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  • Property-a-holics

    Alleged Property Fraud

    You can see why the SFA needed to regulate the SARB industry:
    http://www.chroniclelive.co.uk/north-eas...-23264542/
    http://news.bbc.co.uk/1/hi/england/7975503.stm
    Shameful!
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    Thanks for this Marcus. Yes, SARB does need regulation, just like the entire property industry! We are entering a new era of transparency, which is very positive, as with transparency becomes trust and growth. There are far too many sharks in our industry, willing to rip innocent and niaeve people off and this will have to stop with the advent of regulation. It's scenarios like this that have contributed to the credit crunch in the first place!
    The loopholes are closing as I write this.
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    From the BBC News service:
    House scam bosses are sentenced
    Five Gateshead company directors who conned property investors out of almost £80m have been sentenced.
    John Potts, Peter Gosling, Natalie Laverick, Eric Armstrong and Peter Graham ran Practical Property (PPP), which was closed down in 2004.
    Investors were told their properties would be refurbished and rented out but much of the work was not done.
    The five admitted fraud charges - four were jailed and one defendant was given a 21-month suspended sentence.
    The five had faced a four-month trial charged with conspiracy to defraud between January 2001 and March 2003.
    However, last month Potts of Silksworth Hall Drive, Sunderland; Gosling, 57, of Rothbury Gardens, Lobley Hill; and Laverick, 28, also of Silksworth Hall Drive, admitted the conspiracy charge.
    Graham, 62, of Topcliffe, Sunderland, admitted three counts of fraudulent trading and Armstrong, 55, of Moorside North, Fenham, Newcastle, two fraudulent trading counts.
    Potts was jailed for five years; Gosling was jailed for three years and both Armstrong and Graham were jailed for two years.
    Brazen fraud
    Laverick was given a 21-month prison sentence suspended for two years for offering to give evidence against the others.
    The court heard PPP had been set up in the late 1990s and its offices were based at the Team Valley Trading Estate.
    The hearing heard that investors were asked to put money into derelict properties, but they were just left unoccupied.
    Judge Guy Whitburn QC said: "Where did the money go? The nature of what has been termed a pyramid scheme is that it may disappear into a black hole.
    "It is abundantly clear - Potts in particular, Gosling to a lesser extent, and the others - led an extraordinary lifestyle.
    "It was in particular a brazen fraud."
    Vanessa says: We are going to hear many more of these type of stories over the coming months/due.
    Moral of the story: Due diligence ... or die! And don't pay any large fees upfront without any tangible results.
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