A jury delivered a unanimous not guilty verdict for Paul Bradwell, 53 amid sobs and triumphant cries from the public gallery, the Gazette Live reported. A solicitor was also cleared.
However, Bradwell’s former client, Middlesbrough buy-to-let landlord Jason Omar, 41, was found guilty of conspiracy to commit fraud.
The judge granted Omar bail and told him: “As to sentence for this, I haven’t decided. I’ll decide that when I’ve heard everything that can be said on behalf of both of you.”
Omar and an accomplice, Angelique Huggett, 45, were prosecuted for lying about their income and other facts in their applications, the source of their cash and the purchase price of properties.
They were also accused of “flipping” or buying properties with a bridging loan and then breaching rules by immediately taking out a remortgage.
Huggett earlier pleaded guilty and is already serving a jail sentence for her role in a £1m drugs ring.
Bradwell’s troubles began when the prosecutor alleged the fraudsters would have required the professional assistance of the conveyancer and mortgage broker.
He had to endure court appearances over several weeks in March before being found not guilty of the charges.
Detective Sergeant Thomas Maughan, from the North East regional asset recovery team, said action was being taken to repossess Huggett’s remaining properties.
He described Omar and Huggett as an organised crime group: “Jason Omar acquired 23 properties, one of which is in Spain, and his conviction reflects that these properties are the proceeds of crime.”