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Renwick Haddow is Chief Executive Officer of Bar Works Inc. That’s bad news for investors

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Bar Works is a US-based company apparently hoping to copy the success of WeWork in the co-working sector. But in January 2017, an article on the US property website The Real Deal, exposed the role of Renwick Haddow in Bar Works.

Bar Works told Konrad Putzier, a journalist with The Real Deal, that Haddow was just a consultant to Bar Works, and that Haddow’s role had “diminished considerably” over the past six months.

Haddow’s name doesn’t appear in company brochures or on the company’s website. But Putzier did an excellent job exposing the links between Bar Works and Haddow.

A source told Putzier that Haddow had co-signed leases on behalf of Bar Works, and that Haddow is a co-founder of Bar Works. Putzier tracked down two New York alcohol licences signed by Haddow as “principal” of Bar Works. He also found a San Francisco alcohol licence that Haddow signed as a “member” and “officer” of Bar Works.

On 24 March 2016, Jonathan Black registered the Bar Works website and gave the email address renwick(at)renwickhaddow.com.

Haddow is CEO of Bar Works

On 16 March 2017, Haddow signed a form filed with the Secretary of State for California:

Renwick Haddow signed the document as the Chief Executive Officer of Bar Works Inc.

Why should investors be concerned? Well, here’s a small selection of Haddow’s previous companies:

Capital Alternatives

Haddow was behind the Capital Alternatives network. “The network is estimated to have generated over $180 million in turnover over a period of five years,” wrote Khadija Sharife in her 2015 investigative report about Capital Alternatives in World Policy Journal.

In February 2014, the High Court in London ruled that Capital Alternatives was illegally selling collective investment schemes. In March 2015, following an appeal from some of the defendants, the Court of Appeal also ruled that these were collective investment schemes. In July 2015, the Supreme Court refused to allow any further appeals.

Haddow and his fellow defendants are due to appear in the High Court in London in July 2017. Following a pre-trial review hearing on 7 April 2017, the trial will deal with various issues, including misleading statements which the Financial Conduct Authority alleges were made to investors.

Room to Invest

Before Capital Alternatives, Haddow was a director of Room to Invest. The company sold shares in a hotel in Slovenia. Investors were “guaranteed” a minimum return of 9%. When that all went pear shaped, investors received a letter from Capital Alternatives, telling them that Room to Invest had turned out to be a poor investment. Capital Alternatives suggested transferring the investment to Agri Capital, a farming land scam in Sierra Leone.

Branded Leisure

In May 2000, Haddow became finance director of the company Branded Leisure plc. By 2008, the company had collapsed. Haddow was banned from acting as a director for eight years. The Insolvency Service’s “schedule of unfit conduct” about Haddow included the following:

  • That he caused and/or allowed the company to pay £25,000 in commission in respect of shares which raised £100,000, thereby breaching sections 97 and 98 of the Companies Act 1985.
  • That he caused and/or allowed the company to enter into and continue substantial building expenditure commitments with (inter alia): no proper contractual arrangements in place with either the designers or the builders; no proper costings; no proper cost control; no proper cashflow or management account information and no proper ongoing supervision.
  • That he caused and/or allowed the company to make inaccurate and misleading announcements on OFEX Newstrack, in particular, as to the progress of the company’s building work, sales performance of the company, and the financial performance of the company.
  • That he caused and/or allowed the company to wrongly represent to Bank of Scotland that the Company had adhered to the conditions of the Licence agreement with Hearst, when in fact it had not.
  • That he caused and/or allowed the company to make false representations in a Board minute dated 7 January 2003, in particular as to the financial position and prospects of the company, which caused investors to lose £500,000 in the Catalyst EIS1 Fund.
  • That he caused the Company to misrepresent to the bailiff the true ownership position as to plant and equipment at the Manchester premises.
  • That he caused and/or allowed the company not to keep and/or not to preserve proper accounting records, in breach of sections 221 and/or 222 of the Companies Act 1985.

The Mirror reported that,

The idea was that it would flog health foods and beauty treatments at its “Cosmopolitan Spirit” venues, but only one ever opened and that never brought in the promised returns. Investors who bought shares lost everything and creditors will not be getting the £2 million they’re owed.

In a 2012 article about Haddow, Ceri Jones, a journalist with Money Observer, wrote that Haddow has had 70 company director or secretary appointments, “with a startlingly high failure rate”. Jones wrote that,

His less successful ventures include Capital Ideas plc, Capital Ideas Financial Planning, Charolais Investment Company, Capital Mint, Undervalued Assets, Capital Ideas Investment Management, Arc Property Nominees and Arc Fund Management.

Bar Works

REDD-Monitor has written four posts about Bar Works, Haddow’s latest venture. The first post takes a look at the Bar Works investment and a related UK-based investment, Pod Works. This post has received more than 250 comments, many from concerned investors in Bar Works.

The second post looks at Heron Global Partners, one of the companies offering investments in Bar Works.

The third post features a response from Six and Flow, the company that ran Heron Global Partners’ marketing campaign. The director of Six and Flow, Richard Wood, admitted that at least parts of the marketing campaign were “potentially misleading”.

The fourth post features an email from Franklin Kinard, Bar Works’ Managing Director, explaining that the company was “facing difficulties with its banking facilities”.

The Bar Works business model is something like this. Several companies (such as Heron Global Partners, FJP Investment, Square Yards, EC1 Investments, New World Property Investment, One Touch Property Investment) marketed investments in Bar Works.

Investors hand over US$25,000. This is ostensibly to lease a desk in one of Bar Works’ co-working offices. Investors have no security. The desk in itself is worthless. Bar Works can do whatever they like with the money. The investment is unregulated. It looks a lot like another collective investment scheme.

The Financial Conduct Authority defines a collective investment scheme as follows:

A collective investment scheme (CIS), which is sometimes referred to as a ‘pooled investment’, is a fund that several people contribute to.

The lease-holder (i.e. the investor) then enters into a sub-lease with Bar Works Inc, which promises to pay US$292 per month. Except that by April 2017, Bar Works was already making excuses.

Here’s a sample Bar Works contract:

    SINGLE WORKSPACE LEASE AGREEMENT

The following Lease Agreement (“Agreement”) is effective as of             2016

BETWEEN: Bar Works, Inc., located at:
41 W 46 th Street New York New York 10036 USA
hereinafter referred to as “Landlord”

AND:                        , located at:
 
 
 
 
hereinafter referred to as the “Lease Holder”

each occasionally referred to as a “Party” and collectively referred to as the “Parties”.

WHEREAS, Landlord seeks to lease one workspace in the Landlord’s co-working space located at 41 W 46 th Street New York New York 10036 USA, workspace number           to the Lease Holder for a rent.

WHEREAS, the Lease Holder seeks to purchase a lease on one workspace, workspace number           in Landlord’s co-working space, for a rent.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties agree as follows:

1. Lease Granted to Lease Holder – This Agreement will grant the Lease Holder a lease for one workspace, workspace number           (the “Property”), marked in the floor plan attached to this Agreement as an exhibit (hereinafter referred to as the “Lease”).

2. Rent – The Lease Holder agrees to pay the Landlord a single rent of $25,000 for the Lease upon execution of this Agreement.

3. Term of Lease – The Lease will begin on the date both this Agreement as well as the Sub-Lease Agreement attached herein are duly executed by both Parties (the “Effective Date”) and will remain in effect for 10 years from the Effective Date.

4. Termination – The Landlord will retain the right to terminate this Lease after the second yearly anniversary from the Effective Date only upon the payment of $31,250 to the Lease Holder.

5. Utilities – The Landlord will be solely responsible for payment of all utilities associated with the Property including, but not limited to, water, electricity, gas and heating.

6. Taxes – The Landlord will be solely responsible for payment of all taxes associated with the Property.

7. Insurance – The Landlord will be solely responsible for retaining insurance on the Property including, but not limited to, general liability insurance, fire insurance, construction insurance and all other insurance required by government authorities or through any other legal agreement or relationship entered to by the Landlord with third parties.

8. Regulations Affecting Property – The Landlord will be solely responsible for maintaining the Property in a condition that satisfies all requirements imposed by government bodies and legal agreements entered to with third parties.

9. Alterations – The Landlord will retain the sole right to alter the Property in any way it sees fit, as long as the Property remains in existence as a workspace space suitable for office rental.

10. Assignment – Lease Holder agrees not to transfer, assign or sublet the Property or any part thereof without the Landlord’s approval.

11. Miscellaneous

    11.1. Binding Agreement – The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
     
    11.2. Governing Law – This Agreement shall be governed by and construed under the laws of the State of New York, without giving effect to conflicts of laws principles.
     
    11.3. Counterparts – This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
     
    11.4. Titles and Subtitles – The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
     
    11.5. Modification and Waiver – Any modification or waiver of any provision of this Agreement shall be effective only upon the written consent of the Parties.
     
    11.6. Expenses – The Parties shall each bear its respective expenses and legal fees incurred with respect to this Agreement and the transactions contemplated herein unless otherwise agreed to by the Parties.
     
    11.7. Entire Agreement. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the Parties.

Bar Works, Inc.

By:__________________________
Jonathan Black
It’s CEO

Investor Name:

By:__________________________
 
 

    SINGLE WORKSPACE SUB-LEASE AGREEMENT

The following Sub-Lease Agreement (“Agreement”) is effective as of             2016

BETWEEN:                         , located at:
 
 
 
 
hereinafter referred to as the “Lease Holder”

AND: Bar Works, Inc., located at:
41 W 46 th Street
New York New York 10036 USA

hereinafter referred to as “Sub-Lease Holder”

each occasionally referred to as a “Party” and collectively referred to as the “Parties”.

WHEREAS, Lease Holder seeks to sub-lease one workspace in the Landlord’s co-working space located at 41 W 46 th Street New York New York 10036 USA, workspace number           to the Sub-Lease Holder for a fixed monthly rent.

WHEREAS, the Sub-Lease Holder seeks to purchase a sub-lease on one workspace, workspace number           for a fixed monthly rent.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties agree as follows:

12. Sub-Lease Granted to Sub-Lease Holder – This Agreement will grant the Sub-Lease Holder a lease for one workspace, workspace number the “Property”), marked in the floor plan attached to this Agreement as an exhibit (hereinafter referred to as the “Lease”).

13. Rent – The Sub-Lease Holder agrees to pay the Lease Holder a monthly rent of $292 per month, with payments beginning upon execution of this Agreement.

14. Term of Lease – The Lease will begin on the date both this Agreement as well as the Lease Agreement attached herein are duly executed by both Parties (the “Effective Date”) and will remain in effect for 10 years from the Effective Date.

15. Payment to Lease Holder At End of Term – The Sub-Lease Holder agrees to pay a one-time rent of $25,000 to the Lease Holder on the tenth annual anniversary from the Effective Date.

16. Lease Holder’s Rights to Increases in Revenue Generated by Sub-Lease Holder – Beginning on the second yearly anniversary from the Effective Date, if the Sub-Lease Holder increases the price it chooses to charge third-party tenants for use of the Property, with increases in price charged to third party tenants coming into effect every two years, the Lease Holder will be entitled to monthly payments equaling fifty percent (50%) of the amount of the increase in price charged to third-party tenants.

17. Utilities – The Sub-Lease Holder will be solely responsible for payment of all utilities associated with the Property including, but not limited to, water, electricity, gas and heating.

18. Taxes – The Sub-Lease Holder will be solely responsible for payment of all taxes associated with the Property.

19. Insurance – The Sub-Lease Holder will be solely responsible for retaining insurance on the Property including, but not limited to, general liability insurance, fire insurance, construction insurance and all other insurance required by government authorities or through any other legal agreement or relationship entered to by the Landlord with third parties.

20. Regulations Affecting Property – The Sub-Lease Holder will be solely responsible for maintaining the Property in a condition that satisfies all requirements imposed by government bodies and legal agreements entered to with third parties.

21. Alterations – The Sub-Lease Holder will retain the sole right to alter the Property in any way it sees fit, as long as the Property remains in existence as a workspace space suitable for office rental.

    22.1. Binding Agreement – The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
     
    22.2. Governing Law – This Agreement shall be governed by and construed under the laws of the State of New York, without giving effect to conflicts of laws principles.
     
    22.3. Counterparts – This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
     
    22.4. Titles and Subtitles – The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
     
    22.5. Modification and Waiver – Any modification or waiver of any provision of this Agreement shall be effective only upon the written consent of the Parties.
     
    22.6. Expenses – The Parties shall each bear its respective expenses and legal fees incurred with respect to this Agreement and the transactions contemplated herein unless otherwise agreed to by the Parties.
     
    22.7. Entire Agreement. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the Parties.

Investor Name:

By:__________________________

Bar Works, Inc.

By:__________________________

Jonathan Black
It’s CEO

 

 

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23 Comments

  1. I am an investor from UAE, Real Estate Consultant are the real crooks in this entire process who take a heavy portion in commission and let thier client to die…How can we expect them they will file a case against Developer and will be loyal to their client…

    The agents who miss leaded once, please dont trust them any more, make a group to teach them a lesson…

    I am from UAE, and not the one…there are many in the chain…

    I have all the proofs i.e. agreements, email. comm. , call logs can be pulled on request…

    Just need a right guidance to move forward so that we can get our blood money back…

  2. I have invested 50k, my contract hasn’t been sent yet by barworks, reason was due to reorganization… I invested through Squareyards, I am live in Dubai, they told me wait till mid-June and we can request refund as I haven’t started receiving returns yet.. although Squareyards wanted to give a compfotable situation, but they seemed to be ackward and not knowing what to do.. anyone from GCC, let’s connect and file a case on Squareyards, I have all documents, emails, messaging and signed & stamped confirmation of investment reception..

  3. @Skikdi21, you should act very quickly and demand the return of your money. Inform Squareyards that you do not wish to proceed and you have not had a signed contract. Don’t let them stall you. Put the request in writing and make it absolutely clear that you want a full refund. Which site did you invest in ?

  4. abosultey, I met today with squareyards senior manager, they travelled to NY and met Barworks leadership, the same told Squareyards that everything will resume from mid-June, they have just got some difficulties during reorganization… However I insisted in my last email to both squareyards and barworks that I do not wish to proceed.. all I want is cancellation and refund cause trust has been broken. The good thing is when I transferred the money, squareyards sent me a payment confirmation in a an official document, and an email confirming my investment in Barworks instanbul… by June 15, if nothing happens, I will file lawsuit against squareyards!

  5. @skikdi21, who did Squareyards meet in NYC and at what location because we have people visiting their sites and none of them have ever been able to meet any of the management team ? The staff behind the bars say they have no contact details for their management.
    Ask Squareyards to give you all the telephone numbers of all of their contacts at Bar Works, including cell phones. They will have their cell phone numbers because the time difference means that contact often has to take place outside of office hours.
    Agents will try to stay in the middle between the investor and Bar Works because they don’t want BW to tell you how much they were paid, but this is now a very serious situation and people need to be pestering BW themselves and not having an agent stalling things pretending to be their best friend.

  6. @Marksie.. That wasn’t in one of BW sites, it was actually in sort of HQ office.. The other part is that Squaryard told me they leased office in same location as BW offices.. By looking up SY new office in NY, you can find out about BW… To be honest, Squareyard has been very responsive to me.. When I got to their office last time, I was very upset and talking only with F* words, the boss their got upset too and said .. I get no sh*t from no one.. I told him fine, congrats, you are recorded (had phone memo) and they was cameras all over the place.. I told them, you have my 50k with you.. so you will get all the sh*t of the world here.. you are accountable and I have all papers for that.. Guess what I went downstairs got in my car then my phone rang, Was begged to return to offce, alright, we checked hands, we apologized for each other and started an adult concersation.. well before getting started, I insisted.. as long as I don’t know where my money is now.. you will get load of sh*t (then laughed.. adding a pleasant touch to it).. The gentleman told me an important info here.. that Squareyard is also waiting for BW to pay their 2.3 M USD from their sales (SY sold 500 units alone.. do the maths).. They begged me to not write anything now, they won’t respond and delay any action till 15-June, as per they MD meeting with BW, things will get back to normal.. All payments will resume! that’s my quick MoM.. I met them in Dubai (UAE), one of the most important offices for them… The real deal. Guess what they are very concerned about local laws that stands supportive for public against fraudulent transactions led by registered companies.

  7. @skikdi21, the square yards website shows all their global offices. They don’t have one in the USA. I agree with you that the authorities in Dubai come down very hard on financial scams.

    If SY are owed $2.3m in commission and they have sold 500 units, then (assuming that the units were $25,000 each) they have raised $12.5m for BW. $2.3m = a commission of 18.4% for SY. So allowing a bit of room for the assumptions it is fair to suggest that the actual commission rate for SY is around 20%.

    Bearing in mind that BW has had $12.5m just from SY alone, never mind all the other agents, it is surprising that the only freehold property BW may actually own is Jacks in San Fran and that property is quite heavily mortgaged. When I say that BW owns Jacks, that isn’t really true. A company called Bar Works Capital LLC has a Deed of Trust for it and we don’t know who owns Bar Works Capital LLC. It could be like the Istanbul site which BW claims to own through a BW subsidiary, but the records show that BW doesn’t own any shares at all in that subsidiary.

    The only thing the public have access to about Bar Works Capital LLC is the incorporation document. On that document the company is required to give the name of a person who is either one of the owners (called a member) or is the manager of the company. The name given for Bar Works Capital LLC was Renwick Haddow.

    SY say that they are dealing with the management team at BW so who are they and how are they making contact because nobody is answering the phones ? You should be asking them to give you the names and phone numbers so you can find out for yourself.

    The worrying aspect is that if payments resume then you know that it has to be coming from new investors like Judy who only invested three weeks ago. It isn’t coming from revenues they are generating themselves. This means that more innocent people are being scammed.

  8. That’s a good point you are making… Seems like from the huge commission amount agents are getting, there will be no way out for all investors.. No 125%. It will be a dead-end.
    I am trying nicely to get information from SY people address of their new office in NYC (It’s new opened almost a month ago) and also few names of people from barworks they in contact with. Appearently the only one responding to few emails is a lady called Nancy Rodriguez, but it has a leg and an arm to get something from her… Anways 20% commission for SY explained why they favored and advocated BW product so aggrissively over their own products such as: Covertible notes of 14% return. It’s the easy 2.3 M that they will never see along with our own money.. My only way out is to drag SY to hell.

  9. Hi, I am an investor from Dubai as well. I also had put money on one unit back in August 16. For couple of months the rental income came and then it stopped. I also purchased it through SY. Since last 3-4 months when I was not sighting the rental income in my account, i approached SY. After too many chasers, i was being told that there is some issue and they are checking. All hard earned money and savings just go into this stupid scams. Crooked people!! Everybody is concerned about their own interests. Scammers make money, middlemen in between get a pie out of that and we become the fools.

  10. http://economictimes.indiatimes.com/topic/Barworks-Inc/news
    Read this.. You have to drag SY to hell… They are responsible for this mess. They had their own product “Convertible note” but they pushed to sell this scam because of the high commission.
    So don’t be the fool in the story… Go complain to US authorities, right your story in their FB pages, Twitter, Newspappers… Join group efforts

  11. @Skikdi21

    Please read the thread (http://www.redd-monitor.org/2017/01/17/bar-works-the-return-of-renwick-haddow/?replytocom=2576143#respond), Square Yards has accepted the lack of diligence & errors and they are discussing legal action against bar works, They have also assured to support all of their investors if Barworks turned out to be a Scam…
    I am one of the investor who invested $150K through them in BW…

    @Marksie & i had discussion with the CEO of the SY, and he assure about the actions against barworks…

    I may be wrong, but we should not screw someone who has intentions to support…However If we see things are not moving the way it was communicated, than obviously we will move as you have suggested…

    For now i would urge investor to get united , and keep exploring information…

    Please share your snap of agreement & whatsup no. on uaebarworksinvestor@gmail.com, and you will be part of the verified investor group…

  12. Are there any investors looking to take action to get funds returned? I see SEC have started action now.

  13. Let us create a blog and hire a lawyer to file a law suit on Squareyards. Squareyards in UAE is responsible for promoting this scam and fraud scheme and they should be penalised for not doing a proper risk analysis on Barworks. I heard there are 500 investors suffering because of Squareyard promoting this ponzi scheme and should be penalised for playing a role player role in this whole epsiodes. Let us all exchange our email id and contact details and file a suit on local management.

  14. @Richard bdsouza and @Paul Dobson – I agree with you regarding attacking SY. Wouldn’t hurt to get a group together and attack everyone to do with this – if the authorities pressure them too, even better. Feel free to get in touch.

  15. Can we share email id and tel nos so collectively we become stronger in challenging this case with local agent and with the local authorities. I have already made some contacts with investors in adh and Dubai but more the merrier and stronger. Please standb united.

  16. @Richard

    We are getting strong…You are part of the group now

    Leaving mob. no. here is not a good idea for security reasons.

    uaebarworksinvestor@gmail.com , Is the ID where all the barworks investors are welcome.

    Lets try to get more people onboard…

    So far only 10-15 people from SY sent me email…we need min. 100 people which will create massive pressure on local agents…

    As Chris Lang Suggest please join bigger stream, click on blow

    http://www.redd-monitor.org/2017/01/17/bar-works-the-return-of-renwick-haddow/#comment-2576350

    We need strength in terms of the investors, we are working on a bigger plan with logical points which can be defended during legal action…

    Remember all our opposition has lot of money, we need to be prepared before jumping in this WAR against everyone who architect & promoted this…

  17. Guys…I am from India and i have also invested huge amount in barworks through Squareyards. They are the biggest scammers and they have fooled everyone all over the world by selling these barworks units. The latest update i have is that Barworks has shut everything and they have ran away with all the money. I tried sending them a legal notice in Newyork but there is no sign of Barworks at those address. Even Squareyard is also confirming the same. By luck i have been able to get few contact details for Barworks people and i am sharing them here.

    SAM AURA : +1 7184270150
    JESSICA MAYO : +1 6463313535

    And here is a special mention of the guy by the name JULIAN – +34 672900124 who in agreement with SQY has brought barworks to all these countries and cheated all investors.

    I am not sure what to do now…Squareyard and Barworks have fooled everyone in Dubai, India, Uk, Australia by putting our hard earned money into these scamsters just because they get 20% commission on each unit which they sell to the customers.

    I think the only way is to grab the owner of this squareyard TANUJ SHORI AND HIS WIFE KANIKA SHORI and teach them a good lesson and put them behind bars. Lets barge in all of there offices and drag them till they dont refund our money.