An investigation carried out by the Insolvency Service found five companies associated with Clive Ballard – Property Legal Services (London), Property Legal Services (2007), Overseas Legal Services, Enjoy Property Ltd and United Holdings & Investment – were all linked with three dubious business activities.
These included a fractional investment scheme, a scheme involving the transfer of off-plan properties in Spain and more recently a scheme involving the same day transfer of property in the UK. The companies operated in the UK and Spain.
PLS (London) and PLS (2007) were also associated with Michael Alexandra, also known as Michael Mendoza.
The fractional investment scheme, carried out by PLS (London) and PLS (2007) involved members of the public being offered property investments in the UK and Spain.
Investors were given opporutunity to purchase a minority share in a rented property within a portfolio, have a share in the future growth of the property and a 9% annual return on investment.
But the investigation found monies were paid into a solicitor’s account and then paid out to PLS (London) or directly to the company before any security had been put into place.
At least two of the properties within the scheme were sold and the proceeds paid into the account of Overseas Legal Services and largely dissipated for his benefit.
In 2007, the investment scheme failed and the investigation identified 25 victims who together lost in excess of £288,000.
The same day property transactions involved PLS (London) and PLS (2007) purchasing properties in the UK and selling them on at apparently inflated values on the same day.
This scheme, consisting of 26 transactions, saw property sales financed by a mortgage in excess of the amount paid for the property by the companies. Gross profits arising from the transactions amounted to £859,600.
Net profits after deduction of incentives were £408,745. Forged signatures were also a feature of the scheme.
“We have strong enforcement powers and will not hesitate to use them as here where the companies were found to have operated complicated and dubious property schemes in a thoroughly unscrupulous way destroying the property investment dreams of those people unfortunate enough to have invested,” said company investigations supervisor Chris Mayhew
