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Mortgage Fraud

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It is because of greedy twats like this we are all suffering. Does he deserve sympathy. No, he deserves a cardboard box under a railway arch. He is not a victim and I hope plod pays a visit to him to ask about his mortgage.

http://www.thisismoney.co.uk/mortgages-and..._id=56&ct=5

From buy-to-let to fraud and a lost £100k

Richard Dyson, Financial Mail

5 July 2009

A buy-to-let investor tempted by a 'discounted' Manchester new build flat is £100,000 down and was led into mortgage fraud

Harsh lesson: Philip George was persuaded to lie about his flat's valuation

Philip George had suffered a divorce and was unhappy. To rebuild his life he hoped to make a fortune through property.

That was 2006. Today all his money has gone, debts are mounting and bankruptcy looms.

First he lost tens of thousands of pounds in a Bulgarian property swindle. A further £7,000 disappeared in a property-related insurance scam.

Philip was greedy and naive, probably. Unlucky, certainly. But his most ruinous venture was the Manchester flat on which he is losing £1,000 a month and where his mortgage is £100,000 greater than the property's value.

To buy this property, a two-bedroom flat in a vast, canal-side development called Spinningfields, Philip committed mortgage fraud, though he says it didn't seem like it at the time.

The flat - built by Westbury, now part of Persimmon - was listed for sale at £356,976. But the two property companies who advised Philip to buy the place, one called JAWS Management and the other RightSource Properties, negotiated a ' discounted' price of £321,200.

When he applied for the mortgage, Philip failed to disclose the discount. Instead he applied for the maximum mortgage of 90% of the higher £356,976 value.

This meant that in March 2007 the bank lent £321,200, which was 100% of the price Philip actually paid. Today the property might fetch only £200,000, say local estate agents.

This type of mortgage fraud was common. It was the ruse countless dubious companies peddled when they promised to provide investors with the 'secret' to buying property with 'no money down'. Solicitors, valuers, mortgage brokers, developers and even lenders knew it was rife in the heady years of 2006 and 2007. But they never admit to playing a part in it.

Property law expert Paul Marsh, president of the Law Society, tells Financial Mail: 'In a buoyant property market all the buyer wants is to get the key and all the bank wants is to sell the mortgage. The solicitors cannot cross-examine their clients.'

Did Philip understand the seriousness of his actions when, as urged by RightSource boss Adrian Needlestone (see email, above), he lied about the price he was paying to his solicitor, Leeds-based law firm Lupton Fawcett LLP?

Philip, 43, a degree-educated aviation electronics engineer from Bracknell, in Berkshire, says not. 'At the time I felt I was being given reliable advice from a range of trustworthy sources,' he says. 'I can't remember ever thinking I was defrauding the lender or committing a crime. I know it seems stupid, and I feel sick thinking about it, but at the time it wasn't clear.'

Lupton Fawcett says it has no knowledge of any irregularity in the transaction and no evidence of mortgage fraud being perpetrated. It moved all monies to appropriate recipients and managing director Richard Marshall last week said he had checked the firm's ledgers to prove it.

Overvalued: The flats at Springfields are worth nowhere near as much as suggestedMarshall said he was 'horrified' by the implications of Needlestone's email, but said his firm could demonstate-that it had acted scrupulously at all stages. JAWS Management, which took a 2% fee for 'finding' Philip's property, was dissolved on Tuesday. Its two directors, Andrew Smith and Janet Wearmouth, have emigrated to Hollywood, according to records at Companies House. Calls to the US phone number shown on their files were not answered.

Adrian Needlestone of RightSource claimed not to recognise the incriminating email. 'I sent hundreds of emails,' he says. He denies playing any part in mortgage fraud.

'I've never arranged a mortgage, I'm not a mortgage broker. When clients have lost money I've often helped them out of my own pocket.'

Persimmon says it could not be responsible for how third parties sold its properties on, but says it runs checks on all buyers.

And the bank? The loan comes from a division of collapsed lender Bradford & Bingley, which means Philip's enormous mortgage and the property itself - if it is repossessed - will become the problem of the UK taxpayer.

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In this country, fraud is obviously the way to go. Just make sure you are top of the chain, unfortunately it is difficult to get right to the top and do what the bankers can, but still, the die is cast.

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Guest skullingtonjoe
It is because of greedy twats like this we are all suffering. Does he deserve sympathy. No, he deserves a cardboard box under a railway arch. He is not a victim and I hope plod pays a visit to him to ask about his mortgage.

http://www.thisismoney.co.uk/mortgages-and..._id=56&ct=5

From buy-to-let to fraud and a lost £100k

Richard Dyson, Financial Mail

5 July 2009

A buy-to-let investor tempted by a 'discounted' Manchester new build flat is £100,000 down and was led into mortgage fraud

Harsh lesson: Philip George was persuaded to lie about his flat's valuation

Philip George had suffered a divorce and was unhappy. To rebuild his life he hoped to make a fortune through property.

That was 2006. Today all his money has gone, debts are mounting and bankruptcy looms.

First he lost tens of thousands of pounds in a Bulgarian property swindle. A further £7,000 disappeared in a property-related insurance scam.

Philip was greedy and naive, probably. Unlucky, certainly. But his most ruinous venture was the Manchester flat on which he is losing £1,000 a month and where his mortgage is £100,000 greater than the property's value.

To buy this property, a two-bedroom flat in a vast, canal-side development called Spinningfields, Philip committed mortgage fraud, though he says it didn't seem like it at the time.

The flat - built by Westbury, now part of Persimmon - was listed for sale at £356,976. But the two property companies who advised Philip to buy the place, one called JAWS Management and the other RightSource Properties, negotiated a ' discounted' price of £321,200.

When he applied for the mortgage, Philip failed to disclose the discount. Instead he applied for the maximum mortgage of 90% of the higher £356,976 value.

This meant that in March 2007 the bank lent £321,200, which was 100% of the price Philip actually paid. Today the property might fetch only £200,000, say local estate agents.

This type of mortgage fraud was common. It was the ruse countless dubious companies peddled when they promised to provide investors with the 'secret' to buying property with 'no money down'. Solicitors, valuers, mortgage brokers, developers and even lenders knew it was rife in the heady years of 2006 and 2007. But they never admit to playing a part in it.

Property law expert Paul Marsh, president of the Law Society, tells Financial Mail: 'In a buoyant property market all the buyer wants is to get the key and all the bank wants is to sell the mortgage. The solicitors cannot cross-examine their clients.'

Did Philip understand the seriousness of his actions when, as urged by RightSource boss Adrian Needlestone (see email, above), he lied about the price he was paying to his solicitor, Leeds-based law firm Lupton Fawcett LLP?

Philip, 43, a degree-educated aviation electronics engineer from Bracknell, in Berkshire, says not. 'At the time I felt I was being given reliable advice from a range of trustworthy sources,' he says. 'I can't remember ever thinking I was defrauding the lender or committing a crime. I know it seems stupid, and I feel sick thinking about it, but at the time it wasn't clear.'

Lupton Fawcett says it has no knowledge of any irregularity in the transaction and no evidence of mortgage fraud being perpetrated. It moved all monies to appropriate recipients and managing director Richard Marshall last week said he had checked the firm's ledgers to prove it.

Overvalued: The flats at Springfields are worth nowhere near as much as suggestedMarshall said he was 'horrified' by the implications of Needlestone's email, but said his firm could demonstate-that it had acted scrupulously at all stages. JAWS Management, which took a 2% fee for 'finding' Philip's property, was dissolved on Tuesday. Its two directors, Andrew Smith and Janet Wearmouth, have emigrated to Hollywood, according to records at Companies House. Calls to the US phone number shown on their files were not answered.

Adrian Needlestone of RightSource claimed not to recognise the incriminating email. 'I sent hundreds of emails,' he says. He denies playing any part in mortgage fraud.

'I've never arranged a mortgage, I'm not a mortgage broker. When clients have lost money I've often helped them out of my own pocket.'

Persimmon says it could not be responsible for how third parties sold its properties on, but says it runs checks on all buyers.

And the bank? The loan comes from a division of collapsed lender Bradford & Bingley, which means Philip's enormous mortgage and the property itself - if it is repossessed - will become the problem of the UK taxpayer.

What a chump! Not so much a case of cardboard box, rather a 6' x9' cell at Her Vagesty`s Pleasure!

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What a chump! Not so much a case of cardboard box, rather a 6' x9' cell at Her Vagesty`s Pleasure!

can you please learn how to quote and reply properly so myself and other members don't have to keep scrolling down through the same old text over and over - thanks :)

Harsh lesson: Philip George was persuaded to lie about his flat's valuation
When he applied for the mortgage, Philip failed to disclose the discount. Instead he applied for the maximum mortgage of 90% of the higher £356,976 value.
Overvalued: The flats at Springfields are worth nowhere near as much as suggestedMarshall said he was 'horrified' by the implications of Needlestone's email, but said his firm could demonstate-that it had acted scrupulously at all stages.

See image for help.

quote_reply.jpg

Edited by f00

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http://rightsourceproperties.com/property_list.aspx

Love the logo.

RightSource Properties

Smart Investments for smart people :ph34r:

I bet his ex-wife is laughing at him now.

philip george on singing pig http://www.singingpig.co.uk/forums/thread/708628.aspx

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http://www.livepropertyservices.com/index.html

http://www.singingpig.co.uk/forums/thread/789598.aspx

Sound just to good to be true... ran form a mobile number too

Edited by spectre

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From buy-to-let to fraud and a lost £100k

Richard Dyson, Financial Mail

5 July 2009

A buy-to-let investor tempted by a 'discounted' Manchester new build flat is £100,000 down and was led into mortgage fraud

Philip George had suffered a divorce and was unhappy. To rebuild his life he hoped to make a fortune through property.

That was 2006. Today all his money has gone, debts are mounting and bankruptcy looms.

First he lost tens of thousands of pounds in a Bulgarian property swindle. A further £7,000 disappeared in a property-related insurance scam.

Philip was greedy and naive, probably. Unlucky, certainly. But his most ruinous venture was the Manchester flat on which he is losing £1,000 a month and where his mortgage is £100,000 greater than the property's value.

http://www.thisismoney.co.uk/mortgages-and..._id=56&ct=5

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Just one of 100,000's/millions? The tip of the tip of the tip of the tip of the tip of the tip of the tip of the tip [x1,000,000] of the iceberg.....

This is WHY this country is BUST. :angry:

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Persimmon says it could not be responsible for how third parties sold its properties on, but says it runs checks on all buyers.

And the bank? The loan comes from a division of collapsed lender Bradford & Bingley, which means Philip's enormous mortgage and the property itself - if it is repossessed - will become the problem of the UK taxpayer.

Fraud being paid off by the Tax Payer!

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The flat was listed for sale at £356,976. But the two property companies who advised Philip to buy the place negotiated a ' discounted' price of £321,200.

When he applied for the mortgage, Philip failed to disclose the discount. Instead he applied for the maximum mortgage of 90% of the higher £356,976 value.

This meant that in March 2007 the bank lent £321,200, which was 100% of the price Philip actually paid.

LIAR LOAN

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But Steve Playle, a Trading Standards official with decades of experience, is sympathetic.

'There are patterns to all of our behaviour which can make us victims,' he says.

'To begin with, we lose our objectivity. We are desperate to believe that something is an opportunity or bargain, and so our guard goes down. We believe what we want to hear.'

Later comes the 'denial' phase, he says, when people realise they may have made a mistake but refuse to acknowledge it. 'A little voice tells us we have been stupid,' says Playle. 'But we don't want to listen. We certainly don't want other people to point out our stupidity, so we keep quiet about it.'

Bizarrely, some victims in denial might even make their situation worse by, for instance, committing more cash to the same fraudster in a misguided attempt to convince themselves that everything is all right.

Shame and embarrassment are major reasons why scams go unreported, says Playle, who reckons that for every one victim who approaches Trading Standards, another 19 have been taken in by the same con.

Hmmmmmmmm............... :o

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Hmmmmmmmm............... :o

There was an article in the observer today .. by the "Consumer champion" fellow .. saying the sadest case he ever had was a man who had lost his house to Nigerian fraudsters and got angry when people tried to "Interfere" with his finances to stop him losing his remaining assets ..

People want to believe ..

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http://www.thisismoney.co.uk/mortgages-and..._id=56&ct=5

To buy this property, a two-bedroom flat in a vast, canal-side development called Spinningfields, Philip committed mortgage fraud, though he says it didn't seem like it at the time.

- Do buy-to-let losers deserve sympathy?

The flat - built by Westbury, now part of Persimmon - was listed for sale at £356,976. But the two property companies who advised Philip to buy the place, one called JAWS Management and the other RightSource Properties, negotiated a ' discounted' price of £321,200.

When he applied for the mortgage, Philip failed to disclose the discount. Instead he applied for the maximum mortgage of 90% of the higher £356,976 value.

Hmm... JAWS Management, and he didn't even care to think they might be a bunch of sharks.

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it's entertaining - but you'd think that having found out that he had committed a civil - and possibly criminal - offense he wouldn't blurt it out all over the media

numpty class 1

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it's entertaining - but you'd think that having found out that he had committed a civil - and possibly criminal - offense he wouldn't blurt it out all over the media

numpty class 1

The police and the CPS aren't interested in crimes that don't generate a profit unless it's high profile enough to hit something like The Daily Fail. Since this guy already has a net worth of around -£100,000 there's no profit there. They never bother with robbery, assult or vandalism for the same reasons - better off dishing out some fixed penalty notices - 'crime' solved - good statistics with minimum effort and a profit to boot. Far better than solving a crime that may cost some money and take half a brain cell :lol:

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The police and the CPS aren't interested in crimes that don't generate a profit unless it's high profile enough to hit something like The Daily Fail. Since this guy already has a net worth of around -£100,000 there's no profit there. They never bother with robbery, assult or vandalism for the same reasons - better off dishing out some fixed penalty notices - 'crime' solved - good statistics with minimum effort and a profit to boot. Far better than solving a crime that may cost some money and take half a brain cell :lol:

shame. it should by rights go on his credit rating of coure.

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a fool and his money are so easily parted

but at the core of this muppets actions is a thing that a lot of

"poor greedy vitamin me" have which is

this generations complete lack of

ability for taking personal responsibility!!!

strutting around going "went me gov" when he know what he was doing which was trying to get rich

fast.

A fool but one with no back bone

i feel nothing but contempt for him and the 1000's of "poor greedy me's" out there

you deserve every thing you get you wet bunch of pathetic losers

bang this mummys boy up and chuck the key away, England needs less childish fools like him and more grown ups

who face the truth.

here edith the lesson

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The police and the CPS aren't interested in crimes that don't generate a profit unless it's high profile enough to hit something like The Daily Fail.

The police and CPS can do nothing in these circumstances until there is an official complaint. Who's the loser or victim here? Who's complaining?

The bank?

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The police and CPS can do nothing in these circumstances until there is an official complaint. Who's the loser or victim here? Who's complaining?

The bank?

The taxpayer.

Write a letter of complaint.

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