UK finance company forced to shut after scamming client out of £175k | UK | News
A finance company was shut down following an investigation by the Insolvency Service (Image: Getty)
A UK-based finance company has been shut down by the High Court after investigators found it took around £175,000 from a client for services that were never delivered. Basic Prime Limited, which claimed to offer specialist financial services such as trade finance guarantees and credit enhancement, was wound up following an investigation by the Insolvency Service.
Officials believe the firm was operating an advance fee fraud scheme, taking large upfront payments before cutting off contact. The case centres on an agreement made in April 2024, when Basic Prime Limited said it would arrange a financial guarantee worth $500 million, equivalent to around £382 million, for a client.
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The company has been shut down by the High Court (Image: Getty)
The guarantee was described as a standby letter of credit, a bank-backed instrument commonly used in major international transactions.
The client paid an upfront fee of $231,000, roughly £175,000, but the promised guarantee never materialised. By September 2024, the company had stopped responding entirely.
Investigators also found that Basic Prime Limited was never authorised by the Financial Conduct Authority, despite presenting itself as a legitimate financial services provider.
The company was formally wound up at the High Court in London on Tuesday, November 25, with the Official Receiver appointed as liquidator.
Mark George, chief investigator at the Insolvency Service, said the company had created the appearance of legitimacy while failing to deliver anything in return. He said the investigation revealed a lack of transparency, no meaningful business records and a director who could not be contacted.
“This case demonstrates our commitment to protecting the public from fraudulent operators,” he said, adding that companies taking money under false pretences would not be allowed to continue trading.
Basic Prime Limited was incorporated in October 2023 and claimed to provide services including financial advice, asset management, loan consultancy and project finance.
Its website promoted expertise in credit enhancement and payment guarantees using standby letters of credit and bank guarantees.
However, when the Insolvency Service launched its investigation in May 2025, it discovered the company had no real presence at its registered office in Croydon, which was simply a managed workspace. Attempts to contact the sole director were unsuccessful, as letters were returned unopened and recipients stated they had no connection to either the director or the company.
The firm’s listed email addresses and phone number were also found to be inactive.
Investigators uncovered further red flags in the company’s filings. Although Basic Prime Limited claimed to have £1 million in paid-up share capital when it was formed, its accounts suggested the money was never paid.
Despite receiving the six-figure client fee in May 2024, the company later submitted dormant accounts showing no trading activity.
The Insolvency Service also found that Basic Prime Limited had misrepresented its banking arrangements. While client documents claimed the firm held an account with a major bank, the bank confirmed there was no relationship.
Because neither the company nor its director cooperated with the investigation, officials said they were unable to establish where the business actually operated, who controlled it, how client funds were used or whether other victims may exist.
The Official Receiver will now oversee the liquidation as authorities continue efforts to protect the public from similar schemes.
