Property ‘developer’ banned after collapse of £13m Ponzi scheme

A rogue property developer who conned investors out of £13 million through a Ponzi scheme has been ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Property ‘developer’ banned after collapse of £13m Ponzi scheme | LandlordZONE.

Property ‘developer’ banned after collapse of £13m Ponzi scheme

A rogue property developer who conned investors out of £13 million through a Ponzi scheme has been disqualified from being a company director.

Mitchell Mallin, 34, from Chelmsford, ran Essex and London Properties Limited, which targeted investors by promising that their funds would be used to buy dilapidated houses in London and Essex before renovating them and selling them for a profit.

It raked in more than £13 million over three years from hundreds of people who stumped up between £5,000 to over £100,000. However, only one £147,000 property was ever bought for renovation and instead the majority of investors’ money was siphoned to overseas bank accounts.

The company was wound up in September 2018 following an investigation by .

14 year ban

Mallin did not dispute that he caused or allowed his firm to trade with a lack of commercial probity and has now been banned from acting as a director for 14 years which means he cannot become involved in the promotion, formation or management of a company.

originally flagged up the story in 2018, reporting that many investors were approached directly or via intermediary platforms, enticed by offers of an 8% annual return paid quarterly if the money was held for three years or 12% if the money was held for one year.

Neil North, chief investigator at the Insolvency Service, says: “As the period of disqualification reflects, obtaining funds from investors and using them in a dishonest manner is a serious matter and contrary to the conduct expected of a company director.

Companies have limited liability, which is a privilege, not a right and we have strong enforcement powers which we will not hesitate to use to remove that privilege from dishonest or reckless directors.”

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Property ‘developer’ banned after collapse of £13m Ponzi scheme | LandlordZONE.

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Slum landlord duo told to pay back £9,000 in rent for unlicenced HMO

The owners of an unhygienic and unlicensed HMO in East London have been slapped with a Rent ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Slum landlord duo told to pay back £9,000 in rent for unlicenced HMO | LandlordZONE.

Slum landlord duo told to pay back £9,000 in rent for unlicenced HMO

The owners of an unhygienic and unlicensed HMO in East London have been slapped with a Rent Repayment Order totalling nearly £9,000.

Mohammed Tayab Miah and Rana Miah Begum – who had an agreement with managing agent which acted as the landlord – have been ordered to pay the back rent to four former tenants after falling foul of Tower Hamlets’ selective licensing and deposit protection rules.

A first-tier property tribunal heard that the ex-council flat in Carter House, Brune Street, Spitalfields was let to multiple occupants on separate tenancy agreements who shared the six-bedroom property with no living room.

The tenants’ deposits were not protected in a government-approved scheme and instead were put into a Thamlet Estates private bank account and not returned – a breach of the Housing Act 2004 which the tribunal said made it extremely difficult to attempt to get it returned.

The tenants also reported that the property was plagued by a continued pest problem, and one had even found a rat in the kitchen sink.

Blocked

They also complained of problems with the plumbing as the sink was continually blocked.

The tribunal ruled that it was the respondents’ responsibility to ensure the sink was in proper working order, however, in correspondence, the agent had declared: “Unfortunately we do not deal with blocks no more. The tenants will need to fix this.”

Former tenants Gabrielle Delprete and Jorge Camara were awarded £3,824, while Elisa Pierre was awarded £2,632 and Sakshi Kabra was awarded £2,248 for the period from September 2019 to January 2020. Miah and Begum were also ordered to pay back the £300 in application fees.

A licence was applied for on 9th January 2020 – and later granted – but the property had been unlicensed before that time, the tribunal said, adding that it had received no meaningful correspondence from the owners or managing agent during the process, who failed to comply with its directions.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Slum landlord duo told to pay back £9,000 in rent for unlicenced HMO | LandlordZONE.

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