THE PSYCHOLOGY OF FRAUD - [1] COBOCO

One of our readers has pointed out the similarities between the Hirst fraud case (see link below*) and Coboco’s activities. The newspapers have drawn attention to the Hirsts’ lavish lifestyle, funded by money from bona fide investors who were promised high interest rates.

CoBo’s investors should note that by the end of 2009:

1]  The CBS group of companies (directors: Mark Black, David Bone Snr, Liam Collins and David Bone Jr) had collapsed with £2 million of debt. This debt was transferred to the Collins & Bone Partnership.

2]  Nearly all CoBo’s houses were in Law of Property Act (LPA) Receivership, due to non-payment of mortgages.

3]  The partners were unable to repay promissory notes (PNs) as they became due in 2009 and were therefore technically insolvent.

However, early in 2010, CoBo campaigned vigorously to draw in new investment on the basis that they were running a hugely successful property company and that investors’ money would be secured against their ‘debt-free assets’ (as far as lenders were concerned, ‘non-existent assets’ would be more accurate!). They were so successful at raising new investment with their slick brochures and promises that houses would be bought for cash, that they were able to pay off the LPA receivers. At that time, too, Liam Collins, David Bone Jr and Mark Black flew off to Las Vegas to  party and congratulate themselves on their ability to persuade bona fide investors to hand over their cash. On their return, they continued to lease luxury cars.

Like John Hirst, Coboco seem to think that once they have been given  money, it is theirs to spend just as they please. They apparently feel no obligation at all to fulfill their side of the contract and engage in real business. They simply want to have the lifestyle and perks of wealthy businessmen without doing the work!

*http://www.dailymail.co.uk/news/article-2188084/Lavish-life-couple-stung-expats-10m-Ponzi-fraudster-blew-cash-luxury-hotels-parties-Las-Vegas-wedding.html

ANOTHER COBOCO MORPH?

The business style of Coboco, in a nutshell: their habitual mode is to take money and services from bone fide investors, tradespeople and utility companies, without paying anything out. They have found, quite simply, that they can get away with it. In practice, obtaining a County Court Judgement (CCJ) against any member of the group is a totally worthless procedure since it is too expensive for victims to make legal claims for reimbursement through a court. As of this writing, the legal system allows for the existence of a loophole whereby certain slippery individuals can, so far with impunity, relieve honest people of their money, services or supplies. 

Readers will note that the following website bears a startling resemblance to the now-defunct Castle & Gatehouse website and the director is Mark Black: 

http://www.adavojointventures.co.uk

It will further be noted that extravagant percentages are offered to investors in joint ventures, which bears an uncomfortable resemblance to Coboco's tried-and-tested pattern of touting for investment—and getting the money— on the basis of unrealistic promises.

Also of interest is that the Zoopla entry for Novocastria Lettings now redirects to 'Adavo Property.' Apparently, they have 84 properties available for rent as of this post. Investors, students and contractors should beware of this setup.

DAVID BONE JR - HIS APPOINTMENT WIITH PUBLIC EXAMINER

David Bone Jr has, for the moment, postponed arrest by turning up for his interview with the Public Examiner on 7th August. As expected, CoBo's accounts are in great disorder and it will take many people a lot of time to sort them out. Meanwhile, they have gigs: dancing in the streets as 'Faces of Disco', wearing paper masks depicting various celebrities and collecting money from stunned passers-by. Their audiences are presumably quite unaware of their crooked background and see them as decent, clean-cut young Olympic wannabes. More like Faces of Deceit, isn't it? Are readers of this Blog comfortable with that?

SEE OUR UPDATED WEBSITE

Don't miss our updated website, which gives a synopsis of the fraud case against Coboco to date. 

www.collinsandboneinvestors.net

 

LIAM COLLINS and DAVID BONE - AN ALERT FROM THE FSA

What d'you know? This has been a long time coming, but, well, we are in a double-dip recession, aren't we? So a lot of important matters will have to trundle along at half cock. The FSA will have to be reminded that people need to be warned about Mark Black and David Bone Senior as well. Let's hope they get that together double quick.

LIAM COLLINS—OLYMPIC FRAUDSTER?

We have been informed by the British Bobsleigh Team Coach that Liam Collins is no longer on the team. We don't know if he is still collecting money from the public on the basis of being a member of the Olympic Bobsleigh Team, but if he is, he certainly shouldn't be, because anything the public gives him by way of cash only goes into his own pocket. He has always been disinterested in accounting for whatever income he gets and also how much money he has fraudulently taken from bona fide investors. The reckoning will come to him and he must be wondering—between shows—when that will be or how long he can keep running away from it.

ANOTHER POSTPONEMENT BY DAVID BONE JR

David Bone Jr has managed to postpone his interview with the Public Examiner until the 7th August. This is the story of CoBo's life: their strategy is to wear down their opposite numbers—their creditors and those representing the law of the land—by endless procrastination and argument. Their behaviour simply asks to be called to account and we trust that the authorities are now hot on their trail. We know also that Her Majesty's Revenue and Customs (HMRC) are very keen to find out about years of unpaid taxes. 

COBO, LPA RECEIVERS AND MORTGAGE DEBT

LPA Receivers have been appointed for twenty-three of CoBo’s houses. They are Zolfo Cooper (http://www.europe.zolfocooper.com/) and their agents, Winterhill Largo. The receivers have not yet decided on a strategy for the houses, but all tenancy agreements will be honoured.

But what are LPA Receivers?  Here’s the clearest definition we’ve found:

‘Law of Property Act (LPA) Receivers act for banks and private lenders who have secured their loans by a Legal Charge (mortgage) on a property. Under the terms of the Legal Charge the lender can appoint a Receiver to deal with a property when the terms of the mortgage are not being met – usually when repayments and interest are not being paid. LPA Receivers are experts who can manage the property, deal directly with occupants, outstanding problems, insurance and repairs. To repay the debt, Receivers collect in money from rents or sell the property.’

It is important to note this is not the first time LPA Receivers have taken control of CoBo’s properties. It has happened at least twice before—in July 2008 for two months and from May 2009 to April 2010. Which means that their mortgages were so far in arrears at those times that MX took drastic action. Also, those of us who invested during these periods were in all likelihood giving them money to pay off their mortgage arrears so that they could receive rental income from the houses again.

Just how financially incompetent, irresponsible and plain stupid does one have to be to receive the full market rental from a property and not bother to pay the mortgage? And how cynically deceitful it is then to persuade others to hand over their money on the basis that you are running a successful property company! CoBo and associates have made others pay dearly for their delusional business activities.

DAVID BONE JR - ANOTHER POSTPONEMENT!

We hear from the Public Examiner that David Bone Jr has postponed his interview once again, on account of work commitment, i.e., 'Faces of Disco' public performances. If he dodges the interview a third time, he will be legally required to attend—or face arrest.

Liam Collins did keep his appointment on 3rd July, but produced no proper accounts. His excuse was that CoBo's former accountant had not released them. However, we understand that the accounts have now been passed to the Public Examiner and to the Partners.

One noteworthy point is that Mark Black assumed responsibility for CoBo's accounts at the end of 2010. Has he provided the Public Examiner with the missing figures for 2011? If not, perhaps he will be good enough to assist the enquiry by doing so promptly?

It will be interesting to see just how long CoBo can get away with their dirty tricks by using the old postponement card. They can be sure of our unswerving attention until the whole swindle is satisfactorily resolved.

THE HIDDEN FACES OF COBO

Many of the People of Britain must by now have been lucky enough to get a sight of that desperate duo who call themselves Faces of Disco. These two have been strutting their stuff in the streets, especially in shopping centres, where unwitting shoppers are apparently only too happy to throw money at them. Those show-stopped shoppers: how could they guess that the apparently clean-cut characters camping it up behind those masks are actually crooks? That they have swindled more than one hundred people out of their life savings, pensions and retirement money, blandly telling them that their money has been spent and offering no explanation? We think the public at large needs to know.

These shameless show-offs* were bankrupted in May of this year; how can they now trouser the money of the unwitting public without accounting for it? Are those shoppers aware that these rascals owe people who trusted them some £4 million? (Yes, that’s four million pounds).

It’s clear that nowhere near enough people are informed about the background of these two, riddled as it is with acts of deceit and theft. The evidence is piling up. We would ask all readers of this Blog to help spread this knowledge wide and far and to call to account the rotten characters behind the masks.

* We refer here specifically to Liam Collins and David Bone Jr.  (Richard Edmonds should dissociate himself from these two on account of their dishonest dealings).