RUMOURS about prostitution and extortion have falsely targeted the St James Wine Bar in James Street, according to its owner, Joe Veloso.

He has taken the unusual step of giving a categorical denial to the rumours, even though so far there have been no allegations made in print or in the other media against his wine bar.

However, he says, rumours have pinpointed his bar and business is suffering.

He says he has also lost a member of his bar staff who could not cope with the upset the rumours caused her.

Mr Veloso was originally from Madeira and has lived in Jersey for 35 years.

He was formerly the managing director of the Royal Hotel in David Place.

He said the first he knew rumours were circulating about his bar was when the police interviewed him as part of inquiries into allegations of a prostitution ring involving Eastern European women, backed up by men who threatened ‘clients’ if they failed to pay up.

‘I do not supply prostitutes,’ he said.

‘I have never done so and I do not intend to do so.

The rumours are very unfair on my staff, and they are not fair on me and my family.

They are hurtful and totally false, and I feel unjustly penalised by these malicious lies.’