Tasmania Police has announced it will launch a criminal investigation into the Nant whisky barrel investment scheme.
In an email sent to investors on Wednesday, Detective Sergeant JL Ansell from the Fraud and E-Crime Serious Organised Crime Division said police had received “several complaints” regarding “alleged fraudulent conduct”.
“A preliminary assessment has been made of the evidence currently available and a determination has been made that a criminal investigation into the allegations will be conducted,” the email said.
Bankrupt former Nant owner Keith Batt used an unorthodox barrel investment scheme to fund the business.
Batt offered investors the chance to buy two barrels of whisky for $25,000 with a guarantee to buy it back at maturation, for $36,007 (an attractive 9.55% return on investment). During the four years of maturation, the barrels were to be stored in Nant’s bonded warehouse, with each barrel numbered for the investor.
But, when new owner Australian Whisky Holdings undertook a forensic investigation of 1600 whisky barrels at the distillery prior to buying the business, it found “serious anomalies”.
CEO Chris Malcolm wrote to investors and inform them: “There are a large quantity of barrels which have been decanted, bottled and the proceeds sold however the barrel investors have not been informed or paid.
“There is a large number of barrels that are filled with approximately 45% ABV [alcohol by volume] alcohol, new-make whisky, whereas the industry standard is usually 63.4%.
“There was a significant quantity of barrels that had the owners’ names and barrel numbers sanded off the barrels (we do not understand the reason for this).”
Also, a number had been leaking and not repaired.
Since then, pressure has been mounting on Tasmania Police to take action. ABC News reports detectives have inundated by emails and phone calls from investors.
Chris Vlahos, 61, purchased 14 barrels of whisky from Nant for about $170,000. He was later told his barrels did not exist.
“I welcome the investigation — people power will not be ignored,” he told the ABC.
Tasmania Police have asked investors to supply detectives with their barrel ownership certificate, invoices issued by Nant Barrel Holdings Pty Ltd, and any other documentation that may be of use to its investigation.
