Khaled Abed-Alrazek, director of London Corporate Apartments, pleaded guilty to two counts of misleading actions and one of aggressive commercial practice.
Tenants complained about the firm in late 2017 and early 2018. Tenants had been issued with licenses to occupy, rather than assured short-hold tenancies. This meant they were mislead about their rights to have their deposit protected, as well as their rights as tenants. This also meant they were at risk of illegal eviction.
Complaints were also made about how aggressive tactics were utilised in order to push two of the complainants into leaving the properties.
Abed-Alrazek was fined £2,000 for the aggressive practices, as well as £1,800 for issuing licences instead of tenancy agreements.
Alongside this, he was told to pay compensation for the two deposits which were not returned, worth £1,255. A further £285 compensation has to be paid to one of the tenants who was on the receiving end of what the judge described as “a terrifying experience at the hands of bullies acting in [Abed’s] name”.
Finally he was ordered to pay a £3,000 contribution towards the prosecution costs. London Corporate Apartments has since been dissolved.
Tower Hamlets Council was praised by the judge, Matthew Bone, for its work in getting the case to court, given it was significantly impacted by the pandemic and other issues.
Councillor Kabir Ahmed, cabinet member for regeneration, inclusive development and housebuilding, said: “This was a difficult case and I would like to thank the witnesses and our council teams for their hard work and persistence. Everyone has the right to rent a house without fear of intimidation and the correct legal rights.”
