News Sep 06, 2015 07:38 AM EDT

Zen Gold Turns Investment into Dust, Tony Hetherington shares experience

By Staff Writer

Gold Distribution and Gold ATM Vending Company, Zen Gold, is under heavy fire from Tony Hetherington. The British Entreprenuer claims that his investment in the gold company turned to dust.

Tony Hetherington joined Zen Gold investing £100 every month. Twenty five percent of the amount goes to the person who introduced him to the company as commission; the other 25% was a membership fee, while the rest was for the gold. He was later offered the position of directorship of the company for a 10,000 investment, with a guaranteed 24 percent yield. He was also promised that he would get his money back after three years.

Later on, the company's directors Derek Higgins, Barnaby Milbourn, and Steven Grey persuaded Hetherington to invest £100,000, which he declined. After three years, he tried to get his £10,000 back. But he was told that Zen Gold Partners Limited has been dissolved. All his dealings went through Mr. Milbourne, who is now saying it has nothing to do with him and that Hetherington should contact Mr. Higgins. In the end, Hetherington only received 31 grams of gold for all the investments he put up. He was also never registered as a director of the company.

Zen Gold has all the signs of a pyramid scam that is focused more on recruiting than on speculating the value of gold.

According to Zen Gold's website, it is a "market leading precious metal distribution company." They give their investors a scrutinized selection of the best products from colored diamonds to stockinger safes, where they can put their precious metals. But it seems like the website is no longer being updated, with latest news dating back 2011.

Zen Gold also had a 24-carat bullion dispenser in West London, which opened in 2011. It was supposed to make it easier for ordinary people to buy precious metal as investment. However, the fingernail size gold you get for £47 is only worth £24 to real dealers of precious metals. According to an article from MailOnline, experts say it's a "hopeless investment."

Now, Milbourne is denying most of the transactions that happened between him and Hetherington, while the other directors failed to comment on the matter. Milbourne now has a new business called CALM legal.

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