Beware of help to recover lost funds!

Imperial Consolidated administrator Mazars Neville says they should be wary of approaches for money by Weddington Holdings Ltd., which may be an advance fee fraud.

My sources tell me that Weddington has been telephoning and emailing clients of Imperial and asking them for $2,500 each, This is supposedly to fund an 'Asset Recovery Program' outside of the one being conducted by Mazars Neville.

One client who was approached said Weddington claimed that the firm could recover 80 per cent of defrauded monies from an unnamed private investor who wanted to buy the debt and use it as a 'tax write-off'. Unfortunately it is not uncommon in an investment fraud for there to be a second phase to the scam in which victims are asked for an advance fee to fund a bogus recovery effort.

Within the mainstream financial world there are serious concerns about the legitimacy of Weddington's operations, and many fear that it may be perpetrating a further possible fraud against Imperial's clients.

I understand that one of the companies which has long investigated Imperial Consolidated's activities has obtained copies of two solicitation letters, one signed by 'Clive Wainwright' and another by 'David Peters', in which Imperial victims are asked to sign a 'financial consulting services agreement' with Weddington.

If you are contacted I think it would be wise to ask yourself if it is mere coincidence that Weddington is based in Marbella, Spain, the location from where many of Imperial's fraudulent operations and activities were launched.

Visitors to the Weddington web-site, www.weddingtonltd.com are informed that the firm is 'a European Financial Services Firm with a history of uncovering emerging growth companies which provide unique investment opportunities'. No addition veracity is provided for this claim, nor much in the way of information on their experience or abilities.

The site also promotes several obscure stocks, most prominently MedCare Centers of America Inc., of Boca Raton, Florida. A MedCare spokesman is 'Dr. Jack Vaisman'. Research has shown that companies associated with this gentleman have not always steered clear of legal problems themselves. In 1996, Vaisman's health firm, On Clinic, was found guilty in Australia of importing drugs not licensed for use. Subsequently a Federal Court injunction was also issued against Vaisman to prevent him from making misleading claims and unqualified medical assertions.

Another of the stocks being promoted belongs to World Diagnostics Inc., whose main address is in Miami even though its Florida corporate charter was revoked earlier this month, on October 4, 2002. Having been stung once, investors in Imperial Consolidated should be very wary of any approaches particularly if they involve requesting payment up front.