MJS Capital administrator says shell company used as “conduit for misuse of funds”; former MJS adviser alleges Ponzi scheme

MJS Capital (aka Colarb) collapsed in 2018 after ceasing payments to investors. In March this year it was placed into liquidation.

Relatively little news has emerged from MJS Capital since then, other than a filing on Companies House showing that a creditors committee has been formed, and the odd tidbit released to the press. The liquidators have not yet released a report into the liquidation of MJS Capital (now Colarb Capital plc) itself.

The liquidators, David Rubin & Partners, have however released a report on MJSC Marketing Limited, a shell company used by MJS Capital to move money.

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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.
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Liquidators appointed in MJS Capital collapse

David Rubin and Partners has been appointed to liquidate MJS Capital (now known as Colarb Capital).

MJS collapsed early in 2018 and was finally put into liquidation in March 2019. It allegedly took £30 million from bondholders.

After a five-way beauty parade between rival insolvency practitioners seeking the appointment, David Rubin & Partners was given the job last month, according to a recent filing with Companies House.

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MJS Capital sells Tempus Magazine to private security specialist

MJS Capital and Colarb Capital logos

Tempus, the luxury lifestyle magazine, has relaunched after a five-month hiatus, after being sold by collapsed unregulated investment firm MJS Capital (now Colarb).

Tempus was effectively acquired by MJS Capital in March 2017, and used extensively to sell its unregulated bonds, with frequent double-page ads in the magazine and advertorial articles about MJS Capital itself, which misleadingly described the bonds as low risk.

The September 2018 issue, ironically named a "Wealth Edition", was the last under MJS Capital's ownership. The magazine then ceased to publish for several months.

At the end of January 2019, however, Tempus published a further issue under new ownership. The contents page identifies Vantage Media Limited or Vantage Media Group as the new owners.

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MJS Capital / Colarb investors asked to defer repayment for a year; Shaun Prince claims MJS bonds have capital protection better than FSCS

MJS Capital and Colarb Capital logos

It's been nearly a year since MJS Capital (known as Colarb Capital since October; to avoid confusion, for the rest of this article we will continue using their original and less silly name) started to fail to pay investors' interest and capital on time, something it has blamed on "banking issues".

Investors are now being told that to receive their funds back, they must switch from MJS' bond series 3 or 5 to Colarb bonds series 4. Investors have been promised that if they do, quarterly interest payments will resume and they will receive their (already overdue) capital back after a year.

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