DTI gets wine duo closed

A CHRISTMAS hangover has come early for 1,450 wine investors in City Vintners and Goldman Williams. The Department of Trade and Industry has successfully petitioned to have them closed in the public interest and a provisional liquidator has been appointed.

The sales force at CV and GW persuaded clients that buying top Bordeaux wines such as Chateau Lafite 1996 and Chateau Margaux 1996 would bring big profits.

One investor said: 'I have been pestered by a toff from Goldman Williams asking me to invest in wines, which would show me 15% a year gain without any great risk.'

But the two firms, which shared a London office, sold these wines at 130% above market prices. In September, GW sold Lafite 1996 at £4,868 a case when it could be bought elsewhere for £2,100.

'We have over £18m worth of investors' wines,' said London City Bond, a bonded warehouse in Docklands. The actual value is probably £8m. Recent buyers may find their wine has not been transferred into their names.

Raun Austin and chartered accountant Anthony Sommerville were the directors of both companies.