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  • Property-a-holics

    "No money down" BTL fraudster jailed



    A buy-to-let fraudster built a £10m property empire while his girlfriend claimed state handouts.

    Scott Rowbotham, 35, assembled a portfolio of 88 properties with the help of members of Tameside’s criminal underworld - including drug dealer Billy Black, who was then the partner of police killer Dale Cregan’s sister, Stacey Cregan.

    Rowbotham, who is believed to be collecting around £500,000 a year in rents from his properties, got lenders to hand over huge sums by lying about his income and forging payslips.

    By exaggerating the value of houses he was buying, he cut out the need for deposits, reduced his capital gains tax liability and maximised his profits.

    Rowbotham, of Ashes Close, Stalybridge, has now been jailed for three years and eight months by Judge Hilary Manley after admitting fraud and money laundering between 2004 and 2014.

    Full/source story

    SEE ALSO  -           Buying property with none of your own money 

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    I don't he'd have got those mortgages in today's market.

    Maybe Lisa Orme or any other current IFA would care to confirm that?

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    He must have got them pre 2007 I would have thought

    If he did it after I would like to know how he got away with this Scam

    Can we be surprised we get so much bad press when we have clowns like this in the PRS

    I feel sorry for his Tenants

    My Grandmother had a saying show me your friends and I show you what you are ??? 

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Will the POCA be used to recover all the profits of this criminal LL!?

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    I wondered that Paul.

    The article says that his girlfriend, who was also involved in the fraud, will be "looking after the properties while he's in prison"!!.  I would have thought they would have been confiscated as he is still profiting from the rent generated by the fraud?

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    I think it is only the moeny he got as mortgages that can be confiscated. I would hope the mortgage companies would look to get their money back (though he has made all payments).

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    Surely source of deposit funds etc, where did they come from!?.......Drug money!?

    So commit mortgage fraud, do a bit of porridge and come out to a property empire!!

    Who says crime doesn't pay!!!!!???

    His whole portfolio should be liquidated, all loans repaid and the remaining paid to the Govt.

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    By exaggerating the value of houses he was buying, he cut out the need for deposits

    forensic accounting has revealed a £2m ‘black hole’ that cannot be accounted for by lending, suggesting he was funded by crime as well, prosecutor Nick Clarke QC said.

    Both men laundered money through watches and jewellery which could be hidden from creditors. Rolex, Cartier, Tiffany and Bulgari items were seized from Rowbotham.

    From the defense

    started out legitimately renovating and buying properties with a £120,000 inheritance

    This man has maintained all the mortgage payments and over the course of the years paid some £3m worth of interest to the building societies.

    "The lending institutions have done very nicely out of Mr Rowbotham over the years. He obviously has a great talent for industry, it’s a shame that through impatience he became unstuck.”


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    Looks like a while ago? Can not make up a house price these days. Valuers tell you the price and not the other way around in 2017 as those landlords with 'down valuations' know.

    What the report is maybe talking about is undisclosed incentives? Some backhanders.

    As for dodgy payslips. Fraud is still a risk in mortgage market, except there are thorough checks and it would only cost a few £ for a lender to confirm with HMRC.

    (That being said, BTL is now based on rental stress test and not so much personal income. Though still required.)

    Nevermind HMRC common sense checks being applied to all landlords. With data from banks, letting agents, online agents, land registry and benefits ready to catch the Tax dodger.

    Edit: wow. Broker seems to be involved too.

    "Meanwhile a mortgage broker Rowbotham used has ‘fled the country’, Jason MacAdam, defending, said."

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    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


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