Britain's Got Talent dancer misled investors over £874k
Filed under: News
Instead they were paying business expenses for Collins and his partner.
MisleadingCollins, a 34-year-old dancer from Covent Garden, had found fame as one half of the 'Faces of Disco' act on the reality show. However, even as he was appearing on the show in 2009, his business was unravelling.
He and his cousin (and business partner) David Bone, a 31-year-old from Middleton in Greater Manchester, collected £874,000 from investors, after promising returns of as much as 10% in the 'Collins and Bone' property scheme.
The cousins said they were buying and renovating houses, which they then rented out to students. However, they didn't invest the money, and instead spent it on their business expenses.
The Financial Conduct Authority warned the pair to stop taking money from investors in 2010. However, even after this warning they took £187,500.
BankruptThey were declared bankrupt in 2012, with debts of £4.5 million each, and the Insolvency Service started investigating. They found that the pair had £3 million in debts from a failed property scheme even before they started this one up.
Ken Beasley of the Insolvency Service's Public Interest Unit said: "At a time when they were already heavily indebted Collins and Bone took substantial sums of money from members of the public with the promise of high returns on property investments with no reasonable expectation that they would ever be able to meet the repayments promised to investors."
The investigators were so appalled by what they found that instead of banning them from running a business for the usual 12 months, they banned them for 14 years.
This has come as no consolation at all to the investors who lost everything.
Faces of Disco's official website shows they are still available for parties, weddings and festivals.