Letting agent who stole £80,000 from dozens of landlords admits fraud

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A rogue letting agent who did a runner, leaving landlords more than £80,000 out of pocket, has admitted two counts of fraud.

Scores of tenants and landlords discovered Frank Smart (main pictured), the owner of Smart Residential Letting Agents in Newmarket, had kept their rent and deposits after the firm closed in July 2018, and they were unable to contact him, Ipswich Crown Court heard.

So numerous were his victims that a Facebook page has been set up where landlords who have lost money via his Smart’s activities can co-ordinate attempts to recoup their cash.

One landlord, Teresa Wright, revealed that “my rents are my pension [and] I had to find my tenants’ deposits because he also stole those.

“Some tenants had the stress of threatened eviction because their landlords thought they were not paying their rent. This man caused more than just financial loss and will probably get at worst a short custodial sentence in a soft prison and that will be halved”.

Witnesses

Local and national trading standards officers spoke to more than 30 witnesses during the investigation and found that numerous landlords hadn’t received rental income. They were forced to refund tenancy deposits out of their own pocket, resulting in individual losses ranging from £700 to over £8,000.

A spokesman for Suffolk Trading Standards says many of these landlords entrusted Smart Residential with their rental properties, and to hold tenancy deposits on their behalf.

He adds: “By law, these deposits should have been placed into a deposit protection scheme – offering protection to tenants in the event of a landlord or letting agency facing financial difficulties. We believe that Mr Smart failed to use this scheme, resulting in substantial losses for his victims.”

Fraudulent

Councillor Andrew Reid (pictured), Suffolk County Council’s cabinet member for public health and public protection, believes the prosecution sends a very clear message to business owners like Smart.

“Fraudulent trading will not be tolerated in Suffolk,” he says. “His actions led to countless landlords being significantly out of pocket, causing immeasurable personal and financial stress – and highlighting the importance of ensuring that any rental deposit is placed into a deposit protection scheme.”

Smart, of Dowding Avenue, Cambridge, will be sentenced at a later date.

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