Friday, Jan 16, 2009
The words 'tip' and 'iceberg' spring to mind ...
The Metro: £80m fraud of buy-to-let investors
A group of buy-to-let directors defrauded innocent customers of millions of pounds and spent their money on luxury cars and racehorses.
John Potts, 60, Peter Gosling, 57, Natalie Laverick, 28, Peter Graham, 62, and Eric Armstrong, 55, admitted fraud offences relating to an estimated £80 million of their customers' money. The five all acted as directors of a group of Gateshead-based property investment companies known collectively as PPP.
Between 2001 and 2003 they offered aspiring buy-to-let investors the chance to buy a property, usually in north-east England, in an "up-and-coming area". Customers were promised that the houses would be let to vetted tenants, with building and contents insurance provided and rent guaranteed through an insurance policy covering any periods ... (etc etc)
5 Comments
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1. hubbers said...
"The five are due to be sentenced in March."
What do you want to bet they get small jail sentences and small fines in proportion so the millions they swindled and that they are paroled after no time. And when they come out they will still have fast cars and big houses, albeit in their wives names.
I hope I am wrong.
2. techieman said...
h'away the lads
3. Yoss said...
Roll up roll up, give me all savings and I make you a millionaire!
Been burned by dodgy BTL sales men, well for just £2000 pounds I can teach you how to become a millionaire without lifting a finger.
Our green energy seminar will give you inside tips on how to invest in the green energy market. give you special access to land investments that are south facing, you could buy a large part of solar energy farm by buying off plan before it is even built!
No one likes to be cold, especially in England where it does get cold from time to time, everyone likes a hot bath/shower.
But no one likes paying for it...Should those people pay the oil rich countries for a hot shower/bath.. NO they should be paying you for your environmentally friendly solar heated hot water!
Why work like a dog, when the sun could be making money for you? Just think what you could do with tha extra income.
You could provide an education for your grand children.
Alleviate some of the stress in the current financial climate of your children
Or just spunk the whole lot on a gin palace and see the world.
Our company has helped 1000's of investors make the most of their money and helped combat climate change. And for just £2000 we ould un-lock the secrets of limitless..."WORK FREE"...wealth.
4. phdinbubbles said...
Mackems!
5. drewster said...
Yoss,
You make an excellent point there.
However there is an important difference between offering untold fortunes in property, and offering untold fortunes in shares. The former is legal whereas the latter is effectively banned by the FSA.
Also there's no leverage for the common man. Before the crunch, banks would lend you 95% LTV on a BTL, believing the money to be safe as it is "secured" against the value of property. They would never lend against the value of shares.