Insolvency Service rubbishes latest Frost claim

by EWAN LAMB

The UK Government's Insolvency Service has distanced itself from claims by bankrupt businessman Martin Frost in which he alleged systematic fraud theft and collusion by liquidators and administrators linked to his companies was probably the 'worse' case of its kind so far as the insolvency authority was concerned.

Mr Frost, who is no longer able to hold directorships of businesses after he was declared bankrupt by a judge last October continues to circulate "newsletters" to shareholders of firms in the Avocet Group, including Omega Infinite PLC [now in compulsory liquidation].

In his latest missive sent out in his name earlier this week, Mr Frost renewed his verbal attacks on Omega liquidators Begbies Traynor, and on Ms Emma Porter, of accountancy firm Aver, who is administrator of insolvent Avocet subsidiary Orrdome Farms Ltd. Creditors of those two businesses are said to be owed millions of pounds.

Mr Frost wrote: "Last weekend I received requests from Omega shareholders and others if they could still sell their Omega shares or buy in and join the class civil and criminal actions against Aver, Begbies Traynor and others. I passed these wishes on and the answer back is yes: the beginning of March shall witness the cut-off point."

He then went on to make this somewhat sensational claim with the text highlighted in vivid red: "It is understood from the UK Insolvency Service that this is probably the worse (sic) example ever of systematic fraud, theft and collusion perfected by insolvency practitioners. You have been robbed of over £200 million in value."

But the allegations did not stop there. He added: "On the Scottish farms, Aileen Orr [a member of a Berwickshire farming family] in conjunction with Ms. Emma Porter of Aver has stolen or seeks to directly steal some £14 million from you.

"From the Scottish farms, Aver and Begbies are responsible for the theft & loss of a further £15 million.
Globally, Aver, Begbies and others have caused you a loss of over £200 million."

Mr Frost has aired these allegations regularly since the insolvency practitioners were appointed to the cash-strapped businesses, one by the court, the other by a major creditor. But all of the parties subjected to his claims have dismissed them as completely groundless.

Meanwhile, as Not Just Sheep & Rugby reported last July, Mr Frost's business activities at Omega are the subject of a continuing investigation by....the Insolvency Service.

So we decided to ask that agency to comment on Mr Frost's reference to the service in his newsletter. 

In response, a spokesman for the Insolvency Service told us: "Our enquiries are on-going. And we cannot comment on the newsletter other than confirm that those comments in red within the newsletter cannot be attributed to the Insolvency Service."

One keen observer of the Avocet saga commented: "If, as Frost says, Aileen Orr, Begbies Traynor and Ms. Porter have stolen £200 million from the company, one wonders why they continue to live so modestly? One would expect the thieves' homes to be filled with fine art, expensive antiques, rare books, and cases of fine wine and champagne."