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Property developers banned after abusing £12m of investments

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  • 02/01/2019
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Property developers banned after abusing £12m of investments
Six directors have been banned from running businesses, after they misled more than 300 people to invest £12m into residential property developments.

 

The group ran Liverpool-based property development company Absolute Living Developments Limited from around 2013.

The company pitched developments to investors, which focused on converting commercial buildings into homes.

Developments were predominantly located around Bradford and Greater Manchester.

However, the firm was found to provide misleading and incomplete information to investors, many of whom were based in Asia, meaning due diligence couldn’t be carried out.

Investors complained the developments had not been full completed and the apartments were unliveable.

In 2016 the company was wound-up over unpaid rates.

Investigators later discovered various examples of misconduct by the directors.

And the company had signed charges over Absolute Living Developments’ assets, which meant that a third party owns them and there are no remaining assets in the liquidation to pay creditors.

The Insolvency Service said Absolute Living Developments had no ability to ensure the terms of contracts with investors could be met and had failed to provide safeguards for money obtained.

For one of the developments, it was found the company requested completion payments from investors despite the development not being completed.

The six directors have now been disqualified for a total of 54 years.

Two of the directors live in The Wirral and London, while the rest are based in Malaysia.

London-based Daniel Mark Harrison was the last of the directors to be disqualified and he was banned for six years through a court order.

An independent insolvency practitioner has been appointed to investigate recovery of assets for creditors –  to date claims from creditors in excess of £68m have been received.

Ken Beasley, official receiver for the Insolvency Service said: “This was a complex investigation, considering the amount of money that was invested, not all of the directors were based in the UK and we worked with several other authorities.

“We want to draw attention to these rogue directors so we can alert people about the risks involved when investing, while also warning that we will investigate and tackle those that set out to deliberately rip people off by misrepresenting the investment opportunity on offer.”

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