It is with a heavy heart that I feel I have to write this blog – but my duty to protect others means I have no option. For the reason of ‘public interest’ I have decided to put pen to paper.
I have spoken with many people in recent months who have had dealings with (and in one case, worked with) Charles McGovern and INSCX Exchange. (Integrated Nano Science and Commodity Exchange – recently also trading as Nano Commodity Exchange) Their experiences have left them out of pocket financially and aggrieved at the way they have been treated and misled. In order to prevent this happening in the future I have written this site so that people can have more information to take into account when considering a possible investment or trading relationship.
The background of INSCX and Charles McGovern
According to Charles McGovern he spent some time (many years ago) working as a trader for large corporate banks in London – but speaking with people who have dealt with him in recent years they only know him as a barman at a local public house called The Plough in Eaton.
During this time working as a barman he came up with the idea of setting up a business to trade in Polymers, Base Oils and Nanomaterials.
The problem was he had no money and a very poor personal credit history, so he persuaded the owner of the pub to open a bank account in the name of INSCX and gave this man shares in the business.
Over the subsequent couple of years they managed to persuade an investor to invest £500,000 in the business and several other smaller investors to contribute money.
This money was squandered away on cars, foreign trips and offices and to my knowledge no significant income was ever achieved by operating a trading platform.
During this time Charles McGovern befriended Vivek Kupta – a businessman in India who owns Nanoshel – a producer of nanomaterials. In recent years Charles has worked as a ‘sales agent’ for Nanoshel processing orders that originate in UK, Europe and the USA. He has made a modest living from doing this in the past couple of years whilst trying to resurrect his INSCX business.
In early 2018 Michael McCann was employed by Nanoshel to write software to increase sales of nanomaterials (by writing an e-commerce platform) . During the following 6 months he was also asked by Charles McGovern to write a ‘track-trace’ system for nanomaterials, a trading platform to enable futures trading in Polymers, Base Oils and Nanomaterials and a new INSCX website. It was whilst developing these platforms that Michael became aware of something seriously wrong at INSCX
In the 6 months (Feb-July 2018) not one trade was ever done through INSCX in either Base Oils or Polymers, and the only ‘trades’ done in Nanomaterials where sales orders processed on behalf of Nanoshel. Charles rarely turned up at the office and spent most days working from his filthy small rented house sat at his PC in his Pajamas trying to attract new investors.
The number of downright lies and misleading information that was given to potential investors during this time was incredible. Little effort was made to progress the business – but much time was spent attracting new investment to ‘keep the bills paid’. It became apparent that current commodities prices (information which is to be sold to unwary customers) were going to be obtained simply by telephoning INEOS each morning and asking them for their current price list! and ‘futures’ prices calculated ‘on the back of an envelope’ (well, actually a simple spreadsheet where Charlie tried to guess future labour and feed-stock costs)
The Current Situation
Charles McGovern has ‘done a runner’ to Ireland (he will tell you it’s a more tax efficient environment – but the reality is he is scared that HMRC will catch up with him for his fraudulent annual accounts submissions and is being pursued by current investors for return of monies owed.) His latest accounts (available to view at Companies House) still show over £300,000 as ‘share capital not paid’ and assets of over £200,000 which is almost entirely made up of the value of computer software that he paid just £8,000 to have written!) The reality is a company with almost no value, very little income and assets that should be valued nearer to £10,000 than £200,000. Over the past years income has been achieved by attracting investors with promises of huge returns and NOT from trading. The INSCX bank account is nearly empty and Charles is now desperate for further investment to stay afloat. (And pay for his new car!)
An investor (Simon Wray) is owed £25,000 and despite numerous promises and requests for payment he still has not been repaid – despite this money being given ‘friend to friend’ as a short term loan 2 years ago.
A new business has been created called Nano Commodity Exchange and we believe that Paul Stannard from The World Nano Foundation has an involvement? (Dont be fooled by the name – The World Nano Foundation has assets of just £15,000 and cash in the bank of £84 !) Is this the next incarnation of INSCX?
Charles McGovern is an excellent orator, a charming man and is very convincing when you speak to him. But we advise caution. Don’t just take our word for it when you read the above – if you show due diligence before dealing with INSCX and Charles McGovern you will discover the reality behind the words. Charles has spent a lot of time getting the name INSCX on many lists, directories and websites – but we bet you cant find a company (other than Nanoshel) that has traded with INSCX for several years who will give a good reference.
Before dealing with INSCX or Charles McGovern we suggest the following
- Get an in depth personal credit report on Charles McGovern
- Ask to see what formal qualifications Charles has relating to finance/trading.
- Ask to see what licenses INSCX has to operate a trading business.
- Seek references from organisations that have traded with INSCX – and not just ones that Charles puts forward. A Google search will reveal companies that INSCX claims to have a business relationship with.
- Go and visit him at his office. You will find he is very much a one man band’ with no members of staff
- Ask him how he intends to calculate forward prices of commodities and assess if he actually has information that is not freely available to all.
- Make sure a proper contract is drawn up and checked by an expert legal professional.
- If you are considering paying to access the INSCX trading platform, ask to have free access for 48 hours before paying anything and make your own judgement as to if it is worth it.
- If you wish to use the promoted ‘track trace’ system, ask to see transactions from several companies that already use the system. (There are none – other than internal Nanoshel transactions)
- If when speaking with Charles McGovern he tells you he has contacts within some impressive sounding organizations – check them out. Most of the time these people WILL have heard of Charles, and in many cases spoken to him – but check they actually have a trading relationship.
The above will undoubtedly provoke the response from INSCX that the above are just the lies of disgruntled investors etc. But we have nothing to gain from publishing the above, and leave ourselves open to a prosecution on the grounds of liable if we have lied – something we will happily defend in open court with the oxygen of publicity present if required. But if by doing this we have saved just one investor/company from being conned we will feel justified in publishing the above.
David Harris/Mike McCann on behalf of all those who have lost money investing in INSCX and Charles McGovern.
INSCX-Beware! 