Jun 28, 2013

    Man jailed and fined in wine investing scam

    TWENTY investors poured nearly $176,000 into investment company Assetton to buy high-quality French wine so they could sell it for a profit in the future.

    They received certificates apparently from wine-storage facility Grand Cru Storage attesting that their wines were safely stored at the facility in Bordeaux, France.

    But it was all a sham, a district court heard yesterday. The certificates were fake and, in many cases, no wine had been purchased.

    Former Assetton director and mastermind Mohan Nainan Nainan, 55, was jailed for 11 months after he pleaded guilty yesterday to abetting in the forgery of the certificates and misappropriating the $176,000.

    Nainan also lied to the Registrar of Companies that his company's paid-up capital was $450,000. But its shareholders had not paid for the shares issued to them.

    He was fined $7,000 for contravening the Companies Act.