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Property fraudster given an additional six years

  • 26/11/2014
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Property fraudster given an additional six years
Former property tycoon John Potts has been ordered by Teeside Magistrates Court to serve a further six years imprisonment for failure to pay a confiscation order.

In 2009 Potts (66) was sentenced to five years’ imprisonment on a single count of conspiracy to defraud.

Between 2001 and 2003, Potts defrauded investors in Practical Property Portfolios Ltd of about £80m. In September 2010, a £1.5m confiscation order was made against him and he was told that unless he pays this sum in full within two years he would serve an additional six years imprisonment. That sentence was activated today.

Elizabeth Baker, SFO joint deputy head of the proceeds of crime division, said: “This was a pernicious fraud, with large amounts of money paid over in good faith by investors. As a result John Potts enjoyed an extravagant lifestyle, using other people’s money to pay for home improvements and purchase race horses and expensive cars. The Serious Fraud Office is committed to ensuring criminals surrender the benefits of their crimes.”

PPP companies sold around 4,000 residential properties in the north of England to at least 1,750 investors in exchange for an estimated £80m. The companies were wound up by the DTI in spring 2003 on the basis that they were not being run in the public interest.

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