The Texas State Securities Board had accused the wholesaler of premium Scotch and Irish whiskey of engaging in fraud – statements which have now been fully retracted
DUBLIN and LONDON, July 11, 2022 /PRNewswire/ — A Securities Commission United States suffered a pre-trial defeat by the London and Dublin-based Whiskey & Wealth Club, after the Securities Commissioner of Texas dismissed a cease and desist order against the keg wholesaler.
The historic rejection and retraction of allegations made by the Texas State Securities Board in an emergency order and press release on November 2n/a 2021, have now been completely removed.
The Securities Board claimed that Whiskey & Wealth Club violated United States securities laws, and more specifically, that investments related to whiskey pallets are securities.
The ruling now confirms that Whiskey & Wealth does not engage in investing or trading in securities under US law, which means it’s like buying collectibles such as art, a watch or a car.
The final resolution rightly dismisses – in their entirety – all allegations that the Whiskey & Wealth Club was operating a securities offering in violation of US securities laws. Such dismissals are extremely rare and are granted only when clearly justified. The fact that Whiskey & Wealth Club got the dismissal is testament to what he has always said: the allegations were clearly wrong.
Before any evidence was presented, the Council accused the company of “engaging in securities offering fraud” that threatened to cause “irreparable harm” to the public – statements that ‘they have now fully retracted.
The agreement to dismiss these charges was filed on July 7e 2022, during which the Texas The agency found that Whiskey & Wealth Club did not engage in any illegal acts in connection with the offering or sale of securities and did not make statements intended to mislead the public.
The Board also dismissed allegations and orders against individual Whiskey & Wealth employees, namely: Scott Sciberras, Guillaume Fielding, Alex Mook, Richard Fauconnier and Benjamin Dunlop.
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 United Stateswhere sales of Irish whiskey – the fastest growing premium spirits in the world – are expected to overtake Scotch by 2030.
“This is a hugely significant victory for Whiskey & Wealth Club in a case that has dogged our business for 8 months and has cost a significant amount of legal fees, drained resources and vilified our business, but now opens the door. way for our keg wholesale business to thrive United States and all over the world,” Mr. Bradley said.
“The Securities Board has now rectified its error and acknowledged our substantial cooperation with the investigation. A retraction and dismissal of the case is the closest thing we’ll get to an apology,” he said. he declares.
The new order states that Whiskey & Wealth Club cooperated with the Enforcement Division and provided relevant records and information about its activities to the Enforcement Division.
He added: “The respondents (Whiskey & Wealth Club) have advanced certain defenses including that they did not offer or sell securities, that they did not act as brokers and that they did not commit willful violations of securities law. In line with these defenses, the defendant has provided sufficient information to conclude that a dismissal of the emergency order is warranted.”
Speaking after the historic dismissal, the co-founder and CEO of Whiskey & Wealth Club Scott Sciberras said he was struck by the harshness of United States conflict between justice and trial by the media, claiming that the policies and procedures employed by the Council of State could have significant financial and reputational ramifications for all companies.
“We believe the US practice of issuing a damaging press release the same day as a legal order, without seeing or hearing any evidence, even going so far as to accuse a company of fraud – and then retracting all such allegations 8 months later could have a disastrous impact on most businesses.This type of legal and public relations strategy is unprecedented in Irelandthe UK or Commonwealth countries.
“Fortunately for us, we were able to weather this storm thanks to our incredibly loyal customer 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 Securities Board to educate them on the process of buying and wholesaling whiskey on tap, and how our business model works, and we will continue to work with them in the future.
The popularity of whisk(e)y investing has exploded in recent years, fueled in part by the popularity of the original Irish whiskey, sales of which have increased by 140% over the past decade. Whisk(e)y casks are considered “wasted assets” and are not subject to capital gains tax (CGT).
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SOURCE Whiskey & Wealth Club