X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Entrepreneurs

    Property guru being bankrupted by P2P lender



    A high profile self-proclaimed property millionaire is posting on social media about a legal battle with a debt crowdfunding platform who loaned money to fund his development of apartments in Manchester and have now issued a statutory demand against this individual for £2.3 million.

    In a truly bizarre video on youtube published on the 31st January 2019, the guru threatens the lender and also makes the serious allegation that his business partner embezzled over £500K from his company, which is also contributing to his financial woes.

    He wants his video spread far and wide urging his followers to share it on social media to "make it go viral". 

    In a tirade of foul language he denigrates the bank - "[Name removed for legal reasons] you are a scamming bank and ruin people's lives” is one of the less offensive comments.  

    He shows anger and claims that "the bank will make my mother homeless".  This emotive comment is also used as the tag line on various other social media postings - "The bank that makes mother's homeless".

    It is concerning that the individual claims that bank involved changed their inspection policy as a result of the failure of his development, suggesting that they previously did not check buildings for flammable tiles - the problem which allegedly caused the project go into receivership.

    These tiles allegedly escaped the notice of a surveyor who was paid £6K to inspect the building and issue a completion certificate.

    When external tiles started to fall off the outside walls, the fire brigade identified them as flammable and the building was shut down.

    Once the tiles were identified as being flammable, the building could not be tenanted and the debts started to mount up, including a bridging loan to the bank involved that was £32K per month!  The individual concerned could not sustain this loan without income from tenants, but the building had been condemned as a fire risk.

    This whole debacle is certainly not a poster campaign for debt crowdfunding! 

    It would appear that a serious lack of due diligence is playing a big part in all of this.  Due diligence on the individual(s) involved who borrowed the money, the building involved, the choice of building materials etc.

    The individual decided to sue the developer, and won a court case where the developer did not even bother to turn up to defend themselves. 

    However, soon after, the developer went bankrupt, and no damages were ever paid, although the individual concerned made several social media posts claiming that he had won damages into the millions.  Now, in a complete u-turn, he wants it made clear that he never received a penny.

    The guru says in the video that he purchased the building with "investor partners" who will also no doubt be caught up in this.  These are people from his own network of followers who lent him money for the project.

    For legal reasons, Property Tribes cannot name parties concerned as, if the individual is found to have made defamatory statements, then any publisher could be put at threat of litigation for even linking to the material! 

    There is no substantiation of any of the allegations made in the video and there are claims of on-going legal action for defamation against the individual by the bank in the video, who want him to cease and desist posting on social media and to remove all his content on this topic so far.  

    He refuses point blank to do this saying that he will expose them for ruining people’s lives and other nefarious practices which I will not repeat here as they are going down conspiracy theory roads.

    The guru seems intent on fighting this to the end and blaming others. 

    I must confess that I find it highly distasteful that he brings Grenfell into it and claims that "hundreds of people lost their lives at Grenfell, but the Government don't want you to know about it”.  He also uses the highly emotive image of Grenfell ablaze in his instagram posting, as it is such a sensitive topic and should not be used in this manner imho.

    In another video recorded around the same time, he talks about how he is using £7million of his own money to fund a film which he is starring in.  On that basis, it seems unlikely that his mother would ever need to be made homeless or that he would need to be made bankrupt.

    What do others think?  If you know who this is about, please do not name them.  Any names will be removed for legal reasons.

    DON'T MISS -       Debating crowdfunding/P2P lending in property

    UP NEXT  -            Crowdfunding - sorry the money has gone!

    SEE ALSO -           Property crowdfunding - who is making money?
                       

    0
    0

    Appreciate you can't name names, but could you say which Facebook groups you saw this in to give a steer?

    0
    0

    Unfortunately I can't say anything other than this content is on the individual's own social media profiles.

    0
    0

    hah, any clue how to find the video? tried a few searches but no luck Wink

    1
    0

    totally, have never been so curious for very long time! Wink

    1
    0

    pretty sure not GA, he never uses crowd funding sites, he uses private funding Wink

    0
    0

    That made me smile...  certainly sounds like another loony who doesn't take responsibility for his own actions.

    2
    0

    Following Rebecca's warning I am wary of giving you a direct link, I did a search and found it straight away, top video listed.

    0
    0