An art investment fraud that took hundreds of thousands of pounds from the elderly and vulnerable has been closed down by the courts.

York-based Dionysus Design Services Ltd and Cheshire-based Gem Tobin Ltd have been wound up after they had persuaded victims to invest in works of arts supposedly by renowned painters.

David Hope, chief investigator for the Insolvency Service, said of the York and Cheshire operations: "These companies have acted cynically in accepting almost a million pounds from members of the public, many of whom are elderly and vulnerable people, with no evidence to indicate that the investment being offered had any value or was likely to generate any return for the investors.

"This continues a pattern of behaviour that was identified in relation to other companies.

"Thankfully, the courts have now put a stop to their activities, preventing further harm."

The Insolvency Service became suspicious of their activities because of their association with two other companies, Halifax Mannin Ltd and Hey Design Services Ltd, which defrauded investors out of almost £1.4 million before being wound up on March 1.

All four companies are linked to a business called Asset Consulting Services or Asset Consulting Group. This summer, the Financial Conduct Authority warned investors about using the business, saying it was not authorised to accept investments.

Dionysus Design Services Ltd had a registered address at Fanshawe House, Pioneer Business Park, Amy Johnson Way, Clifton Moor, York, and was incorporated in October 2018.