88 Delicious Creator Alan Christopher Colton Receives 2 Year Suspended Sentence for Fraud

Alan Christopher Colton, who was previously convicted of fraud, received a two-year suspended prison sentence and a £100 fine earlier this week, according to the Times.   Colton, and his company 88 Delicious, a flavored Vodka brand, had previously offered shares in the company on Crowdcube in 2013. While the crowdfunding campaign met its funding target, Crowdcube management abruptly terminated the offer and no investor funds transferred to 88 Delicious.  Following the campaign, Colton directly contacted investors and convinced some to invest in his company, which ultimately failed.

According to FantasyEquityCrowdfunding (FEC), 88 Delicious managed to raise £80,000 outside of a funding platform but questions arose regarding the use of funds.

“Alan had arranged a grand brand launch for December but when the time came it was suddenly canceled. Alan started to make (through his pen pal Sara Hinge) some statements about his stock being impounded by Customs. He then claimed to be critically ill, terminal indeed. This claim was rather ruined by his Twitter feed which showed him enjoying the sun in the South of France. But hell if you are going to die anywhere that’s a pretty good choice.”

FEC also states that Colton had an undischarged bankruptcy related to a fraud case from January 2013. FEC apparently received copies of communications regarding the funding round and has published them on its site.

In early June, Crowdcube released a statement on the Colton trial saying;

“We would, however, like to reassure our members that Crowdcube’s processes and practices in relation to this matter have never been questioned by our regulator and do not form part of the police investigations. In light of this incident and as part of our ongoing commitment to investor protection, we have thoroughly reviewed our processes and have taken additional steps to safeguard our members against such activity.”