Directors of dodgy property investment firm face probe after £800k goes missing

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A construction firm that fraudulently took over a million pounds from property investment hopefuls after offering fixed returns of 9.12% for three-year bonds and 10.35% on five-year bonds has been wound up by the High Court. Its directors also now face an official investigation over their conduct.

North London-based Exmount Construction Limited was registered with Companies House in 2013 and currently has a single active director listed, with a further five listed as having resigned. Its registered offices are within a secretive compound in North Finchley (pictured)

The Insolvency Service says victims of the company’s so-called investment schemes collectively handed over £1.1 million between March 2018 and July 2019 but after the money was deposited, they were unable to contact anyone at the company.

Missing money

An investigation by the Insolvency Service found no record of any money being used for actual property investments and approximately £800,000 was withdrawn by the company directors, or paid to other third parties.

During the investigation directors of the company refused to cooperate with officials and did not contest the winding-up petition.

Judge Briggs, speaking during the winding-up hearing, concluded the company “had traded in an objectionable manner”.

Edna Okhiria, Chief Investigator at The Insolvency Service, says: “Exmount Construction Limited induced investors by providing false and misleading statements in sales and marketing material to part with substantial sums of money to invest in property bonds with the promise of generous returns.

“In reality, this was a scam and we urge potential investors to carry out rigorous due diligence to ensure they use their funds on legitimate investments.”

The Official Receiver will now consider whether to take action against the directors in relation to their conduct and management of the company.

Read more about investment scams.

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New energy efficiency and electrical rules ‘too complex for landlords to understand’

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Peers have criticised updated energy efficiency legislation as being too difficult for homeowners and landlords to understand.

The Building Regulations (Amendment) (England) Regulations 2021 make changes to provide a “meaningful and achievable” increase to the energy efficiency standards for buildings.

These include a new way of measuring energy efficiency, changes in the regulation of on-site electricity generation to ensure it is appropriately installed, changes to address the risk of overheating in new residential buildings and provisions in relation to ventilation standards in new and existing buildings where building work is being carried out.

But the House of Lords’ secondary legislation scrutiny committee complained that the explanatory memorandum that goes with it, “assumes an extensive understanding of the current building regulations and how they are being developed and does not provide a proper stand-alone explanation of the full effects of the instrument or how the changes are expected to operate”. 

Complex and technical

Peers were forced to get extra information from the Department for Levelling Up, Housing and Communities, and felt strongly that members of the public should not have to consult other sources of information, especially when the subject was so complex and technical.

They have urged the department to revise the memorandum.  

Committee member Lord German says: “For an explanatory memorandum to fulfil its purpose, it must provide Parliament, those affected by changes in the law and the wider public with a clear and accessible, stand-alone explanation of the effect of an instrument and how it is intended to operate. 

The Building Regulations (Amendment) 2021 fail on this point and need to be revised accordingly.” The new building regulations take effect on 15th June.

Read the Lords report in full.

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REVEALED: Identities of landlord and tenant in shocking illegal eviction case

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A rogue landlord who chucked his tenant onto the street and threw out his belongings has been handed a suspended prison sentence.

Nur Miah Choudhury, from Bridgwater in Somerset, illegally locked out Ponciano Da Silva from the property in St Johns Street (pictured) while the tenant was working a night shift.

Mr Da Silva returned home early in the morning to find himself homeless.

Taunton Magistrates Court heard that the tenant had regularly paid rent and had believed he would get a month’s notice – which was in itself unlawful given the provisions of the Coronavirus Act to extend protection.

He had lost all his possessions during the eviction, many of which were personal and irreplaceable.

Choudhury had been told by Sedgemoor District Council’s housing team that he must abide by the law before the eviction and, by his own admission, had chosen not to do so.

Serious offence

Magistrates said that while they accepted the landlord had been ill, was of previous good character and ashamed of his actions, it was a very serious offence.

Choudhury was given a six months’ prison sentence (suspended for 12 months) and ordered to pay £3,000 in compensation to his tenant, along with costs of £250.

A council spokesman says: “The majority of landlords are very willing to work with the council and are compliant with their obligations to their tenants. However, the council will continue to crack down on landlords who not complying with the housing legislation which is in place to protect tenants.” 

Image credit: Google

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