Firms involved in £2.4 million property investment scam are shut down

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A group of companies involved in ‘substantial’ property investment scams has been wound up by the High Court and an official received appointed to liquidate the four firms involved.

These are Sentor Solutions Commercial Ltd, Fabcourt Developments Ltd, Sentor Solutions Advisory Ltd and Sentor Solutions Ltd, all of which are part of the Sentor group.

Sentor Solutions Advisory Ltd and Sentor Solutions Ltd recently changed their names and were trading as Hall Contracting Services Ltd and Clarkson Murphy Partners Ltd respectively.

Investors were lured in by promotional material (pictured) via Fabcourt, which claimed that Sentor Solutions Commercial and Clarkson Murphy Partners were the Security Trustee for the investment scheme, which promised fixed rate 8% return investment products known as ‘convertible loan notes’ with high monthly or quarterly interest rates for a duration of two to three years. Investors were asked for a minimum of £50,000.

Assets

The claims of returns and trustworthiness were false – and an investigation by The Mirror newspaper earlier this year found that many claims about Fabcourt on its website were made up, including fake names and stolen photographs provided as its ‘directors’ along with claims it had assets totalling £140m.

In March last year the Financial Conduct Authority (FCA) warned that Fabcourt ‘may be providing financial services or products in the UK without our authorisation’.

Also, investors were not made aware that Fabcourt was the successor to Sampson Property Developments Ltd, previously known as Texmoore Limited, which had operated the same scam until it entered into compulsory liquidation on 23 March 2022 following a creditors petition.

£2.4 million

The two scams combined attracted some £2.4 million, and in both cases the companies told investors the loan notes involved were ‘government-backed and that the investments were covered by the Financial Services Compensation Scheme, neither of which was true.

The Insolvency Service investigation into the companies established that the Sampson Property Developments and Fabcourt Developments schemes were part of an investment fraud collectively operated by the companies.

And having received funds from would-be investors in the Sampson Property Developments and Fabcourt Developments schemes, the companies made a handful of monthly interest payments to the investors before going silent, leaving many substantially out of pocket.

The properties set out in promotional materials were found to be owned by unrelated entities, and videos promoting the investment schemes had been cloned.

Culpable parties

Edna Okhiria, Chief Investigator at the Insolvency Service, says: It is undeniably in the public interest for these companies to be prevented from continuing to trade, which will enable the Official Receiver to carry out further investigations into the activities of the Companies to establish the extent of its liabilities, the position as regards any assets, the whereabouts and conduct of the directors and any other culpable parties.

“These companies operated a fraudulent scheme whereby they mislead the public, falsely claiming that the Texmoore and Fabcourt investment schemes were regulated to provide the veneer that funds invested were protected when in fact they were not.

“These claims induced investors to invest substantial sums. The companies then failed to make more than a few monthly interest payments, leaving investors substantially out of pocket.

“The Insolvency Service, alongside our partner agencies, continues to investigate schemes such as these and to pursue enforcement against those responsible for facilitating them.”

View Full Article: Firms involved in £2.4 million property investment scam are shut down

LATEST: New Housing Minister is a landlord as Gove clears out Truss appointees

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Landlords might have found themselves an ally in the newest minister at the Department for Levelling Up, Housing and Communities.

Lucy Frazer – the latest MP to join returning boss Michael Gove – is a landlord who rents out a property in London and also defended the government’s decision to stand down eviction protections for residential tenants after the pandemic.

She told BBC Question Time in 2021 that tenants had been “protected for a long period of time”, adding “it is important that landlords can take control where necessary”.

A fan of Rishi Sunak, Frazer publicly backed the new prime minister, tweeting this week: “I am confident that our principled and tremendously capable PM will lead us effectively through these economically challenging times.”#

Brief spell

The Conservative MP for South-East Cambridgeshire since 2015, she had a brief spell as transport minister during Liz Truss’s premiership and was previously treasury minister and a minister in the Ministry of Justice. She has also been solicitor general and before becoming an MP was a practising barrister.

Although Frazer’s specific responsibility has yet to be announced, she will join other senior colleagues in the department: Dehenna Davison, minister for levelling up, Baroness Scott of Bybrook, minister for communities, and Lee Rowley, who last month was announced as the MP replacing Eddie Hughes, taking up the housing brief.

Only this morning, former ministers Paul Scully and Andrew Stephenson were quietly removed from the department’s website.

View Full Article: LATEST: New Housing Minister is a landlord as Gove clears out Truss appointees

Landlord fined £22,000 over ‘squalid’ block of flats in London

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The landlord of a block of flats which left leaseholders and tenants living in squalid and unsafe conditions for years has been fined £22,000.

Islington-based Proposed Company Limited failed to fix problems including a leaking roof, damp, mould, and a pigeon infestation – some of which had been reported more than a decade ago. Barkingside Magistrates Court heard that it had also ignored multiple abatement notices from Barking and Dagenham Council.

Housing officers received complaints from residents in shops on the ground floor and maisonette flats on the first and second floor in Whalebone Lane South, Dagenham (pictured).

Pigeon problems

They issued two abatement notices – one for a pigeon infestation in the roof and the other for the leaking roof – however Proposed Company, which bought the building in 1993, ignored the notices and failed to carry out any maintenance. Along with the £22,000 fine, it was also ordered to pay £150 costs and a £190 victim surcharge.

Councillor Syed Ghani (pictured), cabinet member for enforcement and community safety, says: “The building owners showed a flagrant disregard not just for the law, but also for the health and safety of the people forced to live in squalid and unsafe conditions caused by their greed.”

He adds: “We hope this sends a strong message to anyone who hopes to prioritise profit over people that we will take action when necessary.”

View Full Article: Landlord fined £22,000 over ‘squalid’ block of flats in London

Michael Gove – A name to chill a landlord’s spine

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Looks like Hallowe’en has come early for landlords with the announcement that Michael Gove has returned to the Government fold.

And, for me at least, that’s a huge shame.

Because while Gove has a strong reputation for getting things done – he is poised to undo the private rental sector.

View Full Article: Michael Gove – A name to chill a landlord’s spine

Tenant demand hits new all-time high

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The proportion of landlords who are reporting increasing tenant demand has hit an all-time high – for the second time this year.

The findings from Paragon Bank found that a net increase in tenant demand during the past three months was seen by 65% of respondents.

View Full Article: Tenant demand hits new all-time high