Property Investment Fraud by a Developer and Surveyor Exposed to the tune of £50 million!

An amazing (well horrific really) court case is about to come to a close, but the main question still remains: "how on earth did they get away with it for so long!”.

The case, one of the largest so far in the UK, included charging solicitors who had previously pleaded ‘not guilty'. The Cheshire Building Society alerted the West Midlands Police back in March 2006.

According to the Serious Fraud Office,

“It is alleged that the defendants participated in a series of frauds whereby they dishonestly obtained loans from banks or building societies that were secured on six commercial investment properties. Each property was transferred between companies controlled by one of the defendants and his associates at highly inflated prices in a series of back to back transactions. On the basis of the grossly inflated prices, fraudulent valuations and forged leases, the defendants applied for and obtained mortgage advances totalling nearly £50 million.  The mortgages were quickly defaulted on and the lenders suffered significant losses.”

This is first of many cases that are currently being brought against surveyors, legal companies and IFAs/mortgage companies following cases of over-valuing properties.

For more information on this case visit - The Serious Fraud Office


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