Monday, 9 April 2018

Crowdcube in the Dock as they pull Smart Grid Ltd campaign after complaints about director's involvement in a previous Ponzi scheme

This is bad. Crowdcube has an FCA licence based on its ability to present investors with a fair level of information. Quite simply we now know for sure that they dont.

Just a few days ago a new pitch appeared on Crowdcube. The company is called Smart Grid Ltd. Ignoring the fact that this business has its own fundamental problems and is laughingly valued at £25m, one of its team of directors was cleared in 2010 in two court cases costing an estimated £20m, of being involved in a massive Ponzi scheme. The main man behind the scheme pleaded guilty. There is an article here in the Telegraph.

The companies involved in this scheme have a complex web of connecting lines but for our purposes it is sufficient to say that our director, Lincoln Fraser, was a director for the year before the companies went into administration owing many tens of millions.

This information is clearly material to any investors' decision on this opportunity.  However Crowdcude fail to mention it.

So if they do do checks on Directors, why didnt they find this? Or if they dont do checks, why lie? Or if they did checks and decided to bury this information, why have they got a FCA licence?

It is not a crime for Lincoln Fraser to try to forget what happened in 2010. But it should be one for Crowdcube not to have the very basic ability to pick this information up. As you will all know, we have been saying this since day one. Luke Lang sat in the HoC Treasury Committee meeting and stated that CC do thorough checks. Well now we know that is a lie.

This campaign is now suspended although you can still view it by doing a simple google search. The morons!

Smart Grid isnt. The company hasnt traded as of May 2017, since it was set up in 2014 according to CH. Now it makes claims in the Crowdcube campaign that -

We generate 1.65MW of green energy (CHP & OFGEM approved) from our own power station facilities which is sold to the power station building owner, G4 Group, and also (indirectly) to the National Grid, who pay for every kilowatt saved.

Some of the comments on the forum suggest Crowdcube really have been caught with their trousers round their ankles this time -

INSANE Valuation and Directors involved in Fraud
TAllen 18 hours ago
4 Replies
GBP25m pre-money valuation for a Company with £100 in the bank as of Mar (dormant according to filings), no clear operations as we stand today and no patents.
Crowdcube really is letting anything go nowadays.
25 days left
lizmcp 17 hours ago 
I've invested the minimum £10 just to be privvy to follow-up/investigation information. I assume the fund page will disappear soon.
LgMg 13 hours ago 
Dear TAllen,
Thank you for sharing this information. You are right, that Crowdcube is lacking on due diligence. Cheers,
Lg Mg
KHussain 12 hours ago 
Just read this. This is a bit shocking to let a company on their website.
Crowdcube please read the article provided.
Thanks for posting it
HFLondon 1 hour ago 

Investors really need to march with their feet and end this nonsense.


  1. Goodness it really is unbelievable the inability of the cc intern's to do any basic DD or CH checks. Just shocking.. Thanks Rob for bringing it to the attention of ecf before investors in Smart Grid or Not So Smart Grid lost their shirt.

  2. Congratulations on the times article.
    Hopefully more will come later