NY Court orders Ponzi scammer Renwick Haddow and his company Bar Works to pay $7.3m

Maria Nikolova

Defrauded investors of Bar Works obtain default judgement against Bar Works, Renwick Haddow and Zoia Kyselova.

A lawsuit targeting prominent Ponzi scammer Renwick Haddow has just concluded at the New York Southern District Court, with Judge Lorna G. Schofield issuing her final default judgement against all defendants. She ruled in favor of Pengcheng Li against Bar Works 7th Avenue, Inc., Bar Works Capital, LLC, Bar Works Chambers, LLC, Bar Works Management, Inc., Bar Works San Francisco 1, LLC, Bar Works Tribeca, LLC, Bar Works, Inc., Renwick Haddow, and Zoia Kyselova.

The Court granted the plaintiffs’ application for a default judgment against all defendants. This way, the Court found that the defendants had violated the Securities Act of 1933 and the Securities Exchange Act of 1934. The Ponzi scammers were also found to have breached the contracts they had with the plaintiffs and to have been unjustly enriched. Renwick Haddow and Zoia Kyselova are held personally liable for the obligations of the Bar Works companies.

The Court found that the total consideration Plaintiffs paid for the investments is $7,495,000.00, the total amount of income received by Plaintiffs is $502,221.98. Additionally, Plaintiffs are also entitled to pre-judgment interest of $341,929.81. Final judgment is hereby entered against all Defendants, jointly and severally, and in favor of Plaintiffs, in the amount of $7,334,707.83.

In June this year, the United States Securities and Exchange Commission (SEC) filed fraud charges against Renwick Haddow, a UK citizen living in New York. The SEC alleged that he created a broker-dealer and did not register the firm with the SEC as required under the federal securities laws. Haddow allegedly used sales representatives to cold call potential investors and sell securities in Bitcoin Store Inc. and Bar Works Inc.

Haddow allegedly diverted more than 80% of the in funds raised by the broker-dealer for the Bitcoin Store, and sent more than $4 million from the Bar Works bank accounts to one or more accounts in Mauritius and $1 million to one or more accounts in Morocco.

According to the SEC’s complaint, Bar Works claimed to bring “real vibrancy to the flexible working scene by adding full-service workspaces to former bar and restaurant premises in central city locations.” Bar Works primarily sold leases coupled with sub-leases that together functioned like investment notes. The company also allegedly sold leases for more workspaces than actually existed in at least two locations. Among false claims made to investors, who invested more than $37 million in the Bar Works scheme, were that a location was profitable within months of opening and that Bar Works had engaged an auditor.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.