Whiskey & Wealth Club Wins Landmark Dismissal and Retraction of False Allegations by Texas State Securities Board
In a rare securities law u-turn in the United States, the Texas State Securities Board has dismissed its own case against the Whiskey & Wealth Club.
The Securities Commissioner delivered a landmark decision on July 7th 2022, withdrawing all of its seven unfounded accusations against one of the world’s leading cask whisk(e)y wholesalers.
Whiskey & Wealth offers private and institutional investors the opportunity to buy premium Single Malt and Single Pot Still New-Make Spirit, at wholesale prices from leading distilleries in Ireland and Scotland.
The closely-watched legal dispute comes after the Texas Securities Commissioner Travis J. Iles delivered a media release, along with a cease and desist order on November 2nd 2021, accusing Whiskey & Wealth of engaging in fraud by selling unregistered securities in the USA.
The ruling now confirms that Whiskey & Wealth does not engage in securities investment or trading under US law, meaning that it is like buying collectibles such as art, a watch or a car.
The final resolution rightfully abandons – in their entirety – all of the allegations that the Whiskey & Wealth Club was operating a securities offering in violation of U.S. securities laws. Such dismissals are exceedingly rare and only afforded where clearly warranted. The fact Whiskey & Wealth Club obtained the dismissal is a testament to what it has said all along: the allegations were clearly flawed.
Before any evidence was presented, the Securities Board had bizarrely claimed that Whiskey & Wealth Club was “engaging in fraud in connection with the offer for sale of securities” which threatened to do the public “irreparable harm” – statements they have now totally withdrawn.
Commenting on the dismissal, Whiskey & Wealth co-founder Mr. Jay Bradley said the decision now paves the way for a highly regulated business model to flourish in the United States, where sales of Irish whiskey - the fastest growing premium spirit in the world - are forecast to overtake Scotch by 2030.
“This is a hugely important victory for Whiskey & Wealth Club in a case that has been hanging over our business for 8 months and which cost a significant amount of money in legal fees, drained resources, defamed our company, yet now paves the way for our cask wholesale business to prosper in the United States and around the world,” Mr. Bradley said.
“The Securities Board shot from the hip and asked questions later in what was an ill-advised solo run. The Board has now rectified its mistake and recognised our substantial co-operation with the investigation. The retraction and dismissal of the case is the closest thing to an apology that we are going to get,” he said.
The decision provides a fascinating snapshot of the legal and business framework of cask whiskey investment; covering such aspects as distillery storage, insurance, ownership, and the inner workings of HMRC’s WOWGR regulations - the Warehousekeepers and Owners of Warehoused Goods Regulations.
Both sides are now set to work more closely in relation to one of the world’s best performing asset classes, as prices and demand for Irish whiskey, scotch, bourbon, Japanese, and Australian whisky continue to grow at a double-digit rate.
The legal order states that Whiskey & Wealth Club co-operated fully with the Enforcement Division of the Texas State Securities Board, and provided relevant records and information about its business as requested.
It added: “Respondents, (Whiskey & Wealth Club), set forth certain defences, including that they have not offered or sold securities, they have not acted as dealers, and they have not engaged in wilful violations of the Securities Act. In line with these defences, Respondent has submitted information sufficient to conclude that a dismissal of the Emergency Order is warranted.”
Speaking after the landmark decision, Whiskey & Wealth Club CEO and co-founder Mr. Scott Sciberras said that the emergency cease and desist order, along with apparent trial by media, could have wide-ranging financial and reputational ramifications for any business.
“We believe the U.S. practice of issuing a damaging press release on the same day as a legal order, without seeing or hearing any evidence, even going as far as to accuse a company of fraud - and then retracting all of those allegations 8 months later, could have a disastrous impact on most businesses. This kind of legal and public relations strategy - where a State agency shoots first and asks questions later - is unheard of in Ireland, the UK, or commonwealth countries.
“Fortunately for us, we were able to weather this storm thanks to our incredibly loyal client base and new customers, who were able to see beyond the statements and allegations made by the Texas State Securities Board.”
Mr. Sciberras added: “We have worked closely with the Texas State Securities Board to educate them on the process of wholesale cask whiskey buying and selling, and on how our business model works, and we will continue to work with them in the future.”
The popularity of whisk(e)y investment has soared in recent years, partly fuelled by the popularity of the original master Irish whiskey, which has seen a 140% rise in sales during the past decade. Whisk(e)y casks are seen as ‘wasting assets’ and are not subject to Capital Gains Tax, (CGT).
For further information, please visit: https://whiskeywealthclub.com/whiskey-wealth-club-fraud-case-dismissed-landmark-decision-in-united-states/
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
44 (0)20 3129 1639
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Illumination and Nintendo Launch First Trailer for The Super Mario Bros. Movie , which will be released in 20236.10.2022 22:37:00 CEST | Press release
Illumination (HQ: Santa Monica, CA, USA; Founder and CEO: Chris Meledandri) and Nintendo Co., Ltd. (HQ: Kyoto, Minami-ku, Japan; Representative Director and President: Shuntaro Furukawa, “Nintendo” hereafter) today launched the first trailer for The Super Mario Bros. Movie, the new animated film based on the world of Super Mario Bros. during the Nintendo Direct which was streamed today. “We are thrilled to finally share the very first look at The Super Mario Bros. Movie,” said Chris Meledandri, Illumination’s Founder and CEO. “Nintendo’s Mario and Luigi are the most iconic and beloved characters in the gaming universe and it has been an incredible honor to work with Miyamoto-san over the past few years to bring this story to film in a way that is authentic to its roots.” "What kind of movie should Super Mario Bros. be?” said Shigeru Miyamoto, Representative Director, Fellow of Nintendo. “We have been working for a very long time with Chris of Illumination thinking about this question.
FUKUI COMPUTER Partners with Bentley Systems to Promote Digital Transformation in Japan’s Infrastructure Field6.10.2022 22:01:00 CEST | Press release
FUKUI COMPUTER, Inc (Head Office: Sakai City, Fukui Prefecture; President: Tadashi Sugita), the CAD vendor for the construction industry, has entered into a strategic partnership with Bentley Systems (Head Office: Exton, Pennsylvania, USA; CEO: Greg Bentley), the infrastructure engineering software company, to accelerate the adoption of digital workflows in the Japanese construction industry and support the promotion of digital transformation (DX) in the infrastructure field. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221006005805/en/ In Japan, there are concerns about the increasing shortage of labor in the infrastructure field, which is impacting the ability to take measures to mitigate aging infrastructure. This situation is further aggravated by the intensification and frequent occurrence of natural disasters. To help combat this, FUKUI COMPUTER will leverage the Bentley iTwin platform to augment its cloud-based data
Strong growth, but lower margins for Jotun6.10.2022 21:00:00 CEST | Press release
Jotun increased both operating revenue and operating profit year to date. However, the operating margin was challenged by high raw material prices and significant global unrest. Market status Increased sales volume and prices led to strong topline growth for Jotun during the first and second tertiary 2022. Operating revenue came in at NOK 18 243 million, up 22 per cent from the same period last year. All segments (Decorative Paints, Protective Coatings, Marine Coatings and Powder Coatings) delivered double-digit sales growth. “We are satisfied with the development. It is great to see that the marine newbuilding market has recovered after a difficult period. We also see sales improving within ship maintenance products, protective coatings and decorative paints,” President & CEO Morten Fon says. Global challenges The positive development comes in a time of major global challenges. The war in Ukraine is affecting the raw material markets and creating an energy crisis in Europe. In additio
ProDERM Study Results of octagam ® 10% Treatment in Patients With Dermatomyositis Published in the New England Journal of Medicine6.10.2022 18:33:00 CEST | Press release
Octapharma announced today the results from the ProDERM study on the efficacy and safety of octagam® 10% [Immune Globulin Intravenous (Human)], in adult dermatomyositis (DM) patients have been published in the New England Journal of Medicine (Aggarwal R et al. “Efficacy and safety of intravenous immunoglobulin in dermatomyositis”). Dermatomyositis is an immune-mediated myopathy characterised by chronic inflammation of the skin and muscles, leading to cutaneous rashes and progressive muscle weakness. DM is associated with increased morbidity and mortality due to muscle weakness and visceral involvement. Prior to the ProDERM study findings, no therapy had been approved in the US or Europe for the treatment of dermatomyositis based on randomized clinical trials. The Progress in DERMatomyositis (ProDERM) study was the first large randomized clinical trial to investigate an intravenous immunoglobulin (IVIg) (octagam® 10%) in dermatomyositis. The results of the study demonstrated that octaga
New Visa Reports Underscore Importance of Cybersecurity Amid Shifting Threats6.10.2022 17:34:00 CEST | Press release
Visa Inc. (NYSE:V), the world leader in digital payments, today shared an updated look at how fraud has evolved since the height of the pandemic, with criminals simultaneously targeting online and offline vulnerabilities as our daily lives return to a blend of in-person and e-commerce experiences. “As in-person commerce returns to pre-pandemic levels, crooks are back to exploiting the physical points of vulnerability in stores, while continuing to capitalize on e-commerce through malware, ransomware and phishing attacks, among others,” said Paul D. Fabara, Chief Risk Officer at Visa. “In fact, we are continuing to see high rates of skimming, growing over the already elevated levels of the winter of 2021, where fraudsters are jumping on the rise of in-person activity.” Two new pieces of research – the latest Visa Biannual Threats Report and an MIT Technology Review Insights study “Moving Money in a Digital World,” released today in partnership with Visa – highlight new and returning thr
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom