PR96931

DUBLIN and LONDON, July 11, 2022 /PRNewswire=KYODO JBN/ --

Texas State Securities Board had accused the wholesaler of premium grade Scotch

and Irish Whiskey of engaging in fraud – statements that have now been fully

retracted

A Securities Board in the United States has suffered a pre-trial defeat by the

London and Dublin-based Whiskey & Wealth Club, after the Securities

Commissioner in Texas dismissed a cease and desist order against the cask

wholesaler.  

The landmark dismissal and retraction of allegations made by The Texas State

Securities Board in an emergency order and media release on November 2nd 2021,

have now been completely withdrawn.

The Securities Board asserted that Whiskey & Wealth Club had violated United

States securities statutes, and specifically, that investments tied to pallets

of whiskey are securities.

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 Board accused the company of "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

retracted.

The agreement to dismiss these accusations was filed on July 7th 2022, in

which the Texas agency found that Whiskey & Wealth Club did not engage in

illegal acts in connection to the offer or sale of securities and did not make

statements to deceive the public.

The Board also dismissed allegations and orders against individual Whiskey &

Wealth employees, namely: Scott Sciberras, William Fielding, Alex Mook, Richard

Falconer 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 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, and 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 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 new order states that Whiskey & Wealth Club cooperated with the Enforcement

Division and provided relevant records and information about its business to

the Enforcement Division.

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 dismissal, Whiskey & Wealth Club co-founder and CEO

Scott Sciberras said he was struck by the harshness of the United States

conflict between justice and trial by media, saying that the policies and

procedures employed by the State Board could have significant financial and

reputational ramifications for any businesses.

"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 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 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/

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Press Enquiries: Zoë Jones, PR Director - 44 (0)20 3129 1639

- z.jones@whiskeywealthclub.com

SOURCE: Whiskey & Wealth Club