UK finance company forced to shut after scamming client out of £175k | UK | News
A financial company was closed after an Insolvency Service investigation (Image: Getty)
A UK-based finance company has been shut down by the High Court after investigators found it had received nearly £175,000 from a customer for services that were never delivered. Basic Prime Limited, which claimed to offer specialist financial services such as trade finance guarantees and credit enhancement, has been liquidated following an investigation by the Insolvency Service.
Authorities believe the firm was running an advance fee fraud scheme by taking large advance payments before cutting off communications. The case centers on a deal struck in April 2024 in which Basic Prime Limited said it would arrange a financial guarantee worth $500 million (equivalent to around £382 million) for a customer.
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The company was closed by the decision of the Supreme Court (Image: Getty)
The guarantee was defined as a standby letter of credit, a bank-backed instrument commonly used in large international transactions.
The customer paid an upfront fee of $231,000 (about £175,000), but the promised warranty never materialised. By September 2024, the company had stopped responding altogether.
Investigators also found that Basic Prime Limited was never authorized 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 25 November, with the Official Trustee appointed as liquidator.
Insolvency Service chief investigator Mark George said the company created the appearance of legitimacy but offered nothing in return. He said the investigation revealed a lack of transparency, a lack of meaningful business records and an uncontactable manager.
“This case demonstrates our determination to protect the public from fraudulent operators,” he said, adding that companies taking money under false pretenses would not be allowed to continue trading.
Basic Prime Limited was incorporated in October 2023 and claims to provide services such as financial advisory, asset management, credit counseling and project finance.
The website promoted expertise in credit enhancement and payment guarantees using standby letters of credit and bank guarantees.
But when the Insolvency Service launched its investigation in May 2025, it discovered that the company had no real presence at its registered office in Croydon, which was merely a managed business premises. Attempts to contact the sole manager were unsuccessful, as the letters were sent back unopened and the recipients stated that they had no contact with either the manager or the company.
The company’s listed email addresses and phone number were also found to be inactive.
Investigators uncovered other red flags in the company’s filings. Although Basic Prime Limited claimed that its paid-up capital was £1 million when it was founded, its accounts showed that the money was never paid.
Despite charging a six-figure customer fee in May 2024, the company later surrendered dormant accounts that did not show any business activity.
The Insolvency Service also found that Basic Prime Limited had misrepresented its banking regulations. While client documents claimed the firm had an account with a major bank, the bank confirmed there was no relationship.
Because neither the company nor its manager cooperated with the investigation, authorities said they were unable to determine where the business actually operated, who controlled it, how customer funds were used or whether there were additional victims.
The Official Receiver will now oversee the liquidation as authorities continue their efforts to protect the public from similar schemes.
