Saturday, April 28, 2012

Land-Bank Fraud: UK investors are falling victim to this Scam

Image: Stuart Cohen, president of Panama-registered Asset Land Investment, reassures would-be investors.

An increasing number of UK investors are falling victim to land-bank fraud, according to evidence uncovered by a Sky News investigation.

Figures released by the Insolvency Service reveal 67 land-bank companies have been forced into liquidation since 2009, which collectively lost investors £50m.

In total, land-bank schemes are estimated to have lost UK investors £250m and complaints to the Insolvency Service have increased 33% since 2007.

Sky News has confronted a company implicated in defrauding small investors out of their savings in a land sale scam.

Asset Land Investment (ALI) markets plots of land to the public - land it says is about to receive planning permission to build homes, yielding huge profits for the investor.

But the land is often in green belt areas that have little chance of being developed and investors can be left with plots they cannot sell. Read More