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Service found no record of any money being used for actual property investments and approximately £800,000 was withdrawn by the company directors, or paid to other third parties.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