Five "unscrupulous" connected companies involved in dubious property investment schemes in the UK and in Spain have been put into liquidation in the High Court.
Five "unscrupulous" connected companies involved in dubious property investment schemes in the UK and in Spain have been put into liquidation in the High Court.
Company Investigations of the Insolvency Service uncovered a string of lies, forged signatures and missing paperwork at Property Legal Services (London) Limited, Property Legal Services (2007) Limited, Overseas Legal Services Ltd, Enjoy Property Ltd and United Holdings & Investment Limited.
They were linked in the operation of three distinct businesses: a "fractional investment scheme" in which victims became minority owners of properties; a scheme involving the transfer of off-plan properties in Spain and most recently a scheme involving the same-day transfer of property in the UK.
All of the companies were associated with 51-year-old Clive Ballard of north London and in the case of PLS (London) Limited and PLS (2007) Limited, struck-off solicitor Michael Alexander, aka Michael Mendoza, aged 60.
Commenting on the case Company Investigations Supervisor Chris Mayhew said: "We have strong enforcement powers and will not hesitate to use them as here where the companies were found to have operated complicated and dubious property schemes in a thoroughly unscrupulous way destroying the property investment dreams of those people unfortunate enough to have invested.
"More recently significant residential property transactions were entered into where material facts which could have influenced the mortgage lender's willingness to lend were not disclosed to the lenders".
In the fractional investment scheme, investors were told that they'd become a minority owner of a rented property, have a share in its future growth, an annual 9% return, and their money would be safeguarded in a solicitor's account until security was in place.
But money disappeared from the solicitor's account and properties were sold on Ballard's orders and the proceeds "largely dissipated for his benefit".
The investigation has identified 25 victims of the scheme who lost more than £288,000.
In the case of the off-plan property purchase scheme, victims suffered loses estimated at 750,000 euro - around £650,000.
The same-day UK property sales run by PLS (London) Limited and PLS (2007) Limited turned over £860,000.
In ordering the companies into liquidation Registrar Derrett said she was: "satisfied on the uncontested evidence that substantial monies were received from members of the public and that adequate protections were not put in place despite the representations made otherwise.
"The link between the companies is Mr Ballard and his wife Clare Harrington also known as Clare Lewin. The documents relating to the fractional investment scheme and the same day property transactions involved solicitors and accountants in particular, a solicitor Beatrice Lebow and an accountant Iris Korobuk and there is evidence that the signatures of both of these ladies have been forged in various documents.
"There is evidence of 90 instances of forgery. Mr Alexander has informed the investigation that he forged signatures on 50 documents and that Mr Ballard drafted the letters of that nature.
"Also that 32 letters on which Ms Lebow's signature appears were forged by Mr Ballard or his wife Ms Lewin. The evidence involving the same day transactions also demonstrates other individuals were involved in the scheme including a property dealer called Mr Frank Kantor and that incentive payments were made.
"I am satisfied the evidence demonstrates the considerable lack of co-operation with the investigation in particular from Mr Ballard. Some documents have been provided Mr Alexander but essentially there has been limited co-operation by him with the investigation.
"On the basis of the evidence it has in my judgment been demonstrated that certainly three of the companies operated without any commercial probity and adopted unscrupulous business practices which led to the public suffering significant losses.
"One can't determine the whole extent of the losses due to the lack of co-operation and lack of records and it is not clear what role two companies had in this but they are linked and in my view it is entirely appropriate for all of the companies to be placed into liquidation on grounds of public interest."
0 comments:
Post a Comment