MJS Capital assets overstated by £20 million, says administrators

According to the Evening Standard, the administrators of MJS Capital (aka Colarb) believe that CEO Shaun Prince has overstated its assets by £20 million.

Liquidator Asher Miller of David Rubin & Partners has written a report to creditors saying Colarb’s balance sheet cites assets of £39.7 million, of which Prince had said £27.7 million could be realised.  However, the report says Prince’s figure appeared to be “overstated by £20 million or more” based on earlier documents signed by Prince and MJS’s two biggest portfolio companies.

The biggest alleged overstatement was in the case of money invested with a Dubai firm called Angel World, where the £26 million valuation on the Colarb balance sheet was written as being worth only £5.3 million.

shaun prince
“MJS simply had cashflow issues… and should still be operating today” says former MJS Capital CEO Shaun Prince

CEO Shaun Prince blames the discrepancy on MJS Capital being put into liquidation, as a result of being unable to pay its debts to bondholders.

What the liquidation has to do with the discrepancy is unclear. Any administrator would have been free to let MJS Capital’s investments run their course if there was a realistic chance of getting a 400% return as a result.Prince has previously told the Evening Standard that MJS Capital took in c. £30 million from investors.

The administrators’ report is not yet on Companies House but we’ll bring you more when we have sight of it.

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3 thoughts on “MJS Capital assets overstated by £20 million, says administrators

  1. Overvalued? surprise surprise! i also believe Blackmore – both the unregulated offshore collective – Blackmore Global – and the Bond, are also overvalued. The former we’ll probably never know – it’s never been audited. Both, in my opinion, are going to end in tears for investors even though I have written loads about the offshore unregulated collective and its owners & so did the BBC News, investors, like ostrich’s, seem to have ignored it. Reason unknown. But when these ‘go down’ I will say “I told you so”.

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  2. @TVP. Sorry to disapoint, but prison is as unlikely as victims getting their money back.

    Stephen Ward – the mastermind behind the Ark scam almost a decade ago – is still free, spending his ill gotten gains on properties in Florida!!

    Scamming is Low risk, High gain for scammers because the authorities are weak & wholly ineffective. In fact bondreview recently reported how Action Fraud call centre refer to victims as ‘morons’ https://bondreview.co.uk/2019/08/20/action-fraud-call-handlers-call-fraud-victims-morons-and-file-most-reports-as-non-crimes/

    Prison is not going to happen. More likely is Prince starts another company and does it all again!!! I would wager a lot on this!

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