The High Court has shut down a property investment company for defrauding close to £20m of investors’ money.
Essex and London Properties was incorporated on 15 April 2005, with a registered office in Sidcup, Kent.
It claimed to purchase properties with the intention of selling them on at a profit or getting rental income for investors.
Potential investors were approached directly or via intermediary platforms, who received 35 per cent of the invested amounts and offered partnerships in a limited partnership scheme.
Investors were persuaded to invest by offers of an 8 per cent annual return paid quarterly if the money was held for three years or 12 per cent if the money was held for one year.
Over an 18-month period, more than 800 people invested in the company anywhere between £5,000 to over £100,000.
Essex Police, which has an ongoing investigation calculates to date £18.9m has been obtained from creditors and investors.
The reality was ELP only purchased a single property; a house in Harwich for £147,000 which is less than 1 per cent of the overall amount of money collected from investors.
But ELP gave information to investors claiming it had purchased numerous properties that had rapidly increased in value.