Scottish newsletter scam exposed

Winding-up order for two companies that falsely claimed to have raised funds for children with cancer

Two Scottish companies that falsely claimed to have raised large amounts of money to help children with cancer have been compulsorily wound up.

An Insolvency Service investigation found that the Goodwill Children's Cancer Company and Rosebuds (UK) both produced newsletters that were sold door to door across central Scotland.

The Goodwill newsletter claimed that £1m had been donated from proceeds of a sale "to help children with cancer-related illnesses". The Rosebuds newsletter said £750,000 had been donated.

But investigators found the companies had raised a total of only about £250,000 between them, almost £190,000 of which had been paid to their directors. Only £22,250 had been spent on good causes.

Paul John Schultz and Bruno Schultz were named as directors of both the organisations at the time of the winding-up order, according to Companies House records.

The investigation also found that the companies had failed to hold more than half the prize draws they had advertised for subscribers to the newsletter. Some of the prizes had also been won by people connected to the companies or their directors.

Goodwill was compulsorily wound up by the Court of Session in Edinburgh on 2 December. Rosebuds was wound up on 5 December.

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