Avocet 'victims' urged to contact their MP

by OUR BUSINESS STAFF

Hundreds of shareholders who lost millions of pounds in the allegedly fraudulent Avocet air-dung-fuel operation are being urged to describe their experiences to their local MPs ahead of a House of Commons debate later this month.

It is hoped the circumstances which led to the costly collapse of the Avocet group of companies, headed by bankrupt businessman Martin Frost and his "co-life president" Dr Bob Jennings, can be included in the debate alongside financial injustices like the Post Office scandal, infected blood, HBOS Reading, IRHP (Interest Rate Hedging Products) mis-selling, and more.

The members of the All-Party Parliamentary Group on Fair Business Banking headed by co-chair William Wragg MP (Con) have secured the Backbench Business Debate, scheduled for April 18th, on the issue of fair and swift access to redress for victims of significant injustices.

The Group says: "The proposed motion aims to create statutory guidance with common principles for redress schemes, ensuring fairer outcomes for all victims of injustice. This is a significant opportunity to ensure appropriate compensation for victims of past and future large-scale scandals. Our review of this issue highlights the systemic failures in existing compensation schemes: complexity, delays, and the undue burden on victims".

An estimated 650 investors in the Avocet concept are said to have parted with between £22 million and £40 million after being promised a healthy return for their money by company bosses. But the so-called Avocet 'wonder' fuel additive was never marketed, and eventually fraud allegations were made to Police Scotland. A lengthy investigation has not resulted in charges so far.

Last July, a district judge in Leeds ruled that Mr Frost breached his fiduciary duty as a company director by using £425,000 of the firm's cash to help buy two upmarket flats in Scarborough.

In a hard hitting written judgment Judge Christopher Royle dismissed evidence submitted by Mr Frost and his supporters as inconsistent, largely irrelevant and tediously lengthy.

The successful claim by the joint liquidators of Omega Infinite PLC, the former parent of the Avocet group, was seen as a significant step in the insolvency team's bid to repossess the Scarborough properties from Mr Frost and his wife Janet. Both Mr and Mrs Frost were declared bankrupt in 2021.

Court papers lodged by liquidators Joanne Hammond and Ashleigh Fletcher, of insolvency specialists  Begbies Traynor, also claimed that company money was used by the Frosts to pay for holidays and luxury travel.

A witness statement submitted by Miss Hammond included details of four payments, all of them originating from Omega and with each sum made to a Royal Bank of Scotland account in Mr Frost's name. The amounts were for £150,000 on September 27th, 2017, £145,000 the following day, and separate transactions of £50,000 and £80,000 both completed on April 26th, 2018.

The transfers took place around the time the flats, numbered 2 and 4, in Scarborough's 57 Belvedere, The Esplanade changed hands into the ownership of Mr Frost. His assertion that the properties were in fact owned by a company called Loch Lomond Heritage of which he was a director, was also rejected by Judge Royle.

According to a post on the Avocet Shareholders' Forum: "We are hoping as many MPs as possible know the individual losses and effect this has on us as shareholders of Avocet companies. Many have lost their life savings, others have been able to replace their losses, but the bulk of the 650 shareholders plus creditors cannot. As this fraud has been primarily enacted in the U.K., it is important to have our say en masse in the House of Commons."

One shareholder who claims to have lost hundreds of thousands of pounds after investing in Avocet told us: "It's heart breaking and unbearable for many of us who put our money and our trust in the company's management. It seems that although the Frosts have been bankrupted they were able to continue living in a luxury apartment. There needs to be swift financial redress in cases like these".