A GET-RICH company which has attracted more than £12.5 million in investments has been hit by a Government winding up action.

The money-making operation Titan, which has recruited hundreds of people in Lancashire, was attacked as a scam in parliament by MPs after promising people large cash returns for a down payment of £2,500.

Now, Ian Lang, Secretary of State for Trade and Industry, has issued winding up petitions against the companies at the centre of the operation.

An application to appoint a liquidator, which is being opposed by the companies, was heard at the High Court in London by Vice-Chancellor Sir Richard Scott and was yesterday adjourned until June 10.

The action follows an investigation into the company by the Department of Trade and Industry.

But an application to ban further recruitment until the case had been heard was dismissed.

Sir Richard said: "They are all adults and it is open to them to be as foolish or as wise with their money as they wish - I'm not satisfied the scheme is positively illegal."

Investors, who joined Titan after being invited to up-beat recruitment meetings, were told they would get cash when they encouraged friends and business colleagues to join the scheme.

The High Court hearing was told that the scheme had grown at an "enormous rate", increasing from 1,750 members to 5,000 in a short space of time.

Labour's consumer spokesman Nigel Griffiths has claimed there could be a repeat of the collapse of Alchemy Ltd, which cost 17,000 people a total of £10 million two years ago.

The organisers of German-based Titan packed hundreds of people into a series of recruitment meetings across the North West earlier this year before turning their attention to Scotland.

But Trading Standards officials warned people to stay clear of the scheme, claiming the numbers given to potential recruits just didn't add up.

They said it would take millions of people to join the scheme before some people got a return on their investment.

The Secretary of State's winding up petitions are against SHV, Titan Marketing Gesellschaft and Titan Business Club. A spokesman for the Department of Trade and Industry said: "The Secretary of State has in the courts, applied for the official receiver to be appointed provisional liquidator, pending the hearing of the petitions."

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