Property scam shut down

Thu, 12 May 2005

The Department for Productivity, Energy and Industry has closed down a get-rich-quick property scam.

The deal promised to help investors make a fortune in the property market - up to £1 million in a year - by compiling an impressive portfolio of properties.

The companies involved, including Sterling Mansion (UK) Ltd and Mansion Investments Ltd, took thousands of pounds from investors who put money into what they thought was a legitimate scheme.

"These companies knew that their clients, who had all invested substantial amounts of money, could not make anything like the returns that were promised," said DPEI Minister Gerry Sutcliffe.

"The schemes were completely misleading and set up with the sole aim of parting people from their money," he added.

The High Court in London wound up four companies linked to the scam following the confidential investigations.

All four ran similar schemes, usually with the common characteristic of offering the opportunity to build a £1 million portfolio of properties.

At seminars and sales meetings, clients were told that they would be offered newly built houses or luxury flats at discounts, without the need for deposits.

Mr Sutcliffe added that this was a "major success for the DPEI's Companies Investigation Branch".

He also pointed out that it should serve as a "warning to any other unscrupulous operators that we will not hesitate in tracking them down and bringing them to book".

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