A firm selling ‘alternative investment’ products, including ‘fancy coloured’ diamonds, to investors including a number of vulnerable people such as a dementia sufferer, has been ordered into liquidation.

Cutler and Ross Limited, which was formerly known and traded as, Sussex Associates Limited, sold investments in a range products including wine and working interests in oil wells, according to The Insolvency Service.

Although denied by the company, the investigation also showed that it sold investments in storage units and art, officials explained.

The company sold alternative investments valued in excess of £3million from which it received commissions of at least £1,384,662.

A “good number” of Sussex Associates clients were elderly and/or vulnerable individuals, who had often been targeted by “other unscrupulous companies” and one investor was sold investments whilst suffering from dementia, The Insolvency Service probe discovered.

The company was warned by the FCA that in their opinion Sussex Associates had acted in breach of the Financial Services and Markets Act 2000, which sets out rules on who can engage in regulated activities and the promotion of investment activity.

The Insolvency Service stated: “Despite giving the FCA assurances, on 23 July 2014, that it would ensure that it would not knowingly act in contravention of FSMA the company continued to promote investments in breach of the regulations selling a further £728,000 of investments in oil alone.”

The company issued a brochure to investors promoting coloured diamonds stating that it was:

“A boutique brokerage that sources rare natural coloured diamonds for buyers seeking to diversify their portfolio.

“Sussex Associates will help you choose the most appropriate diamonds for your portfolio. This involves assisting in the colour selection, size and other characteristics of the diamond in order to maximise your return. Using our global network we will then source the best quality, conflict free diamonds.”

Officials said that in fact, the company acted a broker for a single supplier. Total sales of diamonds by Sussex Associates amounted to £288,673 from which Sussex Associates received £203,816 in commission, the insolvency report stated.

After the FCA issued a warning to the public about Sussex Associates Limited the company subsequently changed its name, first to Compare Markets Limited and then to Cutler & Ross Limited, the report said.

The Insolvency Service stated: “The company’s sole recorded officer, John Rimmer, admitted to the investigators from Company Investigations that the name change was as a result of the FCA’s warning.

“Mr Rimmer informed the investigation that the company was simply an introducer. This argument did not hold water with the FCA, or the Court and was not supported by the evidence uncovered during the enquiries carried out by Company Investigations.”

In ordering the company into liquidation on grounds of public interest on 19 October 2016 Mr Deputy Registrar Garwood said: “It is very clear on the evidence that the company has engaged in activities in respect of which it has utilised false, misleading and unjust statements to persuade, often vulnerable, people to part with their money. It was not just a single activity, but a range of activities, almost anything you can think of.

“It is noticeable that the company does not appear [at the hearing]. It is difficult to imagine what factor it [the company] could put forward to oppose the winding up. I suggest there is nothing and that is why they are not here.”