Insolvency Service Steps Up Fraudulent Trading Enforcement: Two Major Cases in 48 Hours

The Insolvency Service^[1] has announced two major fraudulent trading enforcement actions within 48 hours, targeting a whisky investment firm and a construction company that collectively left customers more than £300,000 out of pocket.

On 27 August 2026, the regulator announced it had wound up Cask Spirits Global Limited at the High Court in London following investigations into the company's sale of whisky cask investments^[1]. A day earlier, it confirmed that Derby builder Michael Haslam had received a suspended sentence for fraudulent trading through his company M&J Builders Limited^[2].

The twin announcements signal an intensifying regulatory focus on director misconduct, particularly in sectors where upfront payments and high-value promises create opportunities for fraud.

Whisky Investment Firm Wound Up After Customers Paid for Non-Existent Casks

Cask Spirits Global Limited was shut down after the Insolvency Service identified 17 customers who paid a total of £97,249 for whisky cask investments, of whom only four received valid ownership documentation^[1].

The company, which was incorporated in June 2024, used high-pressure sales tactics including social media advertising and cold-calling to sell investments, promising customers substantial returns of 120-150% and tax advantages^[1].

However, investigations found that some customers received certificates for casks that did not exist, while others were registered in the company's name rather than the customer's own. Certificates also contained false storage location information^[1].

In one case, a customer was told his cask was stored at a bonded warehouse in Scotland. When he checked, the warehouse denied any connection to the company^[1].

The true scale of losses may be higher: the company failed to provide 27 of the 29 accounting documents requested by investigators^[1].

Cask Spirits Global Limited operated under the name "Cask Spirits Ltd" on its website and customer-facing materials, despite no such company existing at Companies House^[1].

The company was wound up at the High Court in London on Tuesday 25 August 2026^[1].

Mark George, Chief Investigator at the Insolvency Service, said: "Our investigations identified serious concerns about the way Cask Spirits Global Limited was run and the harm caused to customers who invested in good faith. People handed over thousands of pounds for whisky casks they never legally owned."^[1]

Derby Builder Receives Suspended Sentence for Two-Year Fraud

A day before the whisky investment case was announced, the Insolvency Service confirmed that Michael Haslam, a 74-year-old Derby builder, had received a suspended sentence for fraudulent trading^[2].

Haslam took more than £200,000 from seven customers between November 2020 and 2022 while knowing his company, M&J Builders Limited, was insolvent^[2]. His victims paid thousands of pounds for home improvements but were left with dangerous structures, no running water, and bills they could not afford to fix^[2].

One family was told their extension may need to be demolished entirely^[2].

Investigations found that instead of completing the work, money from the company's accounts was spent on cash withdrawals, Amazon and eBay purchases, and payments to Haslam's own family^[2].

Haslam's victims often found his company through adverts in local magazines^[2].

He pleaded guilty to one count of fraudulent trading in May 2026 following Insolvency Service investigations^[2].

Haslam was initially sentenced to two years and four months in prison at Derby Crown Court on Wednesday 1 July 2026^[2]. However, the Court of Appeal suspended the sentence at a hearing on Wednesday 26 August 2026. Haslam's sentence will now be suspended for two years with a rehabilitation order, and he will be required to complete 160 hours of unpaid work^[2].

He was also disqualified as a company director for the maximum period of 15 years^[2].

Haslam's fraudulent actions caused total losses of around £210,000 across his seven victims^[2].

Patterns in Fraudulent Trading Enforcement

Both cases share common characteristics that may signal where the Insolvency Service is focusing its enforcement efforts:

First, both companies operated in sectors where customers typically pay substantial sums upfront before receiving goods or services. The whisky investment firm collected £97,249 from 17 customers^[1], while the Derby builder took more than £200,000 from seven customers^[2].

Second, both cases involved prolonged periods of fraudulent activity. Haslam operated M&J Builders Limited while insolvent for two years, between November 2020 and 2022^[2]. Cask Spirits Global Limited was incorporated in June 2024 and wound up in August 2026, suggesting a similar timeframe^[1].

Third, both companies used targeted marketing to find customers. The whisky firm used social media advertising and cold-calling^[1], while the builder advertised in local magazines^[2].

Fourth, in both cases, the Insolvency Service faced significant obstacles in reconstructing the full picture of wrongdoing. Cask Spirits Global Limited failed to provide 27 of 29 requested accounting documents^[1], suggesting true losses may be higher than the £97,249 identified.

UK Company Register Context

The enforcement actions come as the UK company register shows significant insolvency activity across the economy. As of the latest data, 109,731 companies are in liquidation across the UK register, with a further 4,637 in administration, 1,081 in receivership, and 2,371 in voluntary arrangements^[3].

Across the 6.62 million companies on the UK register, CompanyPulse data^[3] shows 5.57 million remain active, with 14,161 new companies incorporated in the most recent seven-day period.

The register's largest sectors by company count include real estate (with 436,846 companies in "other letting and operating of own or leased real estate" and 268,625 in "buying and selling of own real estate"), management consultancy (264,688 companies), and business support services (218,293 companies)^[3].

Construction-related sectors also represent significant portions of the register. Development of building projects accounts for 113,215 registered companies, while construction of domestic buildings accounts for 95,929^[3].

These economy-wide figures provide context for understanding where fraudulent trading cases may emerge, though they do not represent sector-specific fraud statistics.

Outlook

The Insolvency Service's willingness to pursue both court-ordered wind-ups and criminal prosecutions for fraudulent trading suggests directors operating insolvent companies while taking customer payments face heightened enforcement risk.

Mark George's statement on the Cask Spirits case emphasised the regulator's readiness to act: "Despite claiming to have stopped trading, the company appeared to still be active and posed an ongoing risk to the public. We will not hesitate to act where a company cannot be trusted with people's money."^[1]

The 15-year director disqualification handed to Haslam represents the maximum period available to courts^[2], signalling that judges are prepared to impose severe penalties in cases where directors knowingly exploit customers while trading insolvently.

For businesses operating in sectors where customers pay upfront for goods or services to be delivered later, the cases underscore the legal obligation to cease trading when insolvency becomes apparent, rather than continuing to accept new customer payments that cannot be fulfilled.