The jewelry tycoon, accused of orchestrating a £170m scam that defrauded numerous wealthy investors, faces potential bankruptcy if a bid by his former company’s liquidators succeeds. Insolvency practitioners investigating the collapse of Vashi, a high-end diamond jewelry retailer with stores in prestigious London locations, have issued a statutory demand against its founder, Vashi Dominguez.
The demand, seeking repayment of just over £17,500, is set to be made public this week, almost three years after the company’s sudden demise. Mr. Dominguez, who founded the bespoke jewelry business in 2007, attracted investments from notable City figures like Lord Spencer, the founder of ICAP, and John Caudwell, the billionaire behind Phones 4U.
Shareholders were assured by Mr. Dominguez that the company’s diamond inventory, supposedly valued at over £150m, would secure their investments. However, the inventory was later appraised at a mere £100,000.
Teneo, the firm handling the liquidation process and recovery efforts for creditors since April 2023, has served the statutory demand in anticipation of initiating bankruptcy proceedings against Mr. Dominguez. According to the Insolvency Act, a statutory demand serves as a formal notice to repay a debt within 21 days, after which a creditor can pursue bankruptcy proceedings against the debtor.
Some creditors have expressed frustration over the Serious Fraud Office and Metropolitan Police’s decisions not to investigate the company’s collapse and the alleged actions of its founder. Last month, The Times reported that the Financial Ombudsman Service had rejected additional submissions from investors regarding Vashi, citing a lack of definitive evidence of fraudulent activities.
Teneo declined to provide a comment, and efforts to reach Mr. Dominguez for a statement by Sky News were unsuccessful.
SOURCE