The Financial Conduct Authority (FCA) has begun criminal proceedings against Rajinder Gill, Jetinder Sandhu and Amandeep Heer for offering sale-and-rent-back agreements without being approved.
Gill and Sandhu’s charges relate to activity between September 2014 and November 2018, where they allegedly offered loans and agreements on behalf of Secure Property Buyers and Secure Property Sales.
They have also been charged with fraudulent trading.
Heer’s charges relate to activity between February and October 2017 when she allegedly offered two sale-and-rent-back agreements without authorisation.
Gill appeared at Westminster Magistrates’ Court on 17 May and did not enter a plea, while Sandhu and Heer appeared at the same court on 12 June. Heer did not enter a plea either while Sandhu pled not guilty.
The case has been sent to Southwark Crown Court.
The FCA has asked anyone who thinks they may have been targeted by the activities of Gill, Sandhu and Heer to get in touch with its investigations team.
The regulator said that sale-and-rent-back schemes could be used to target homeowners in financial difficulties as they sell their home at a discounted price with the agreement that they can pay rent to continue living there. However, rent payments can rise and tenants can risk eviction if they fall behind on payments.
The FCA said firms could misrepresent the terms of the sale and tenancy, meaning tenants are not aware of the risks.
