UK authorities fail to reassure investors in what could be the country’s biggest property scam this year
- More than 100 investors have filed complaints against marketing agency Emerging Property and developer A1 Alpha Properties (Leicester)
- A1 Alpha stopped paying returns of 8 per cent to 10 per cent after October 2018, investors say
Investors in holiday homes and student accommodation projects in the United Kingdom have been left disappointed after authorities, including the Serious Fraud Office, failed to provide a satisfactory response in what could be the country’s biggest property scam this year.
More than 100 investors are seeking redress from marketing agency Emerging Property and developer and manager A1 Alpha Properties (Leicester). They said A1 Alpha stopped paying them promised rental returns of 8 per cent to 10 per cent on their investment in student accommodation and holiday homes after October 2018.
A1 Alpha was declared insolvent in February, at the request of its investors. According to business advisory firm Quantuma, which has been appointed to handle the insolvency, the case involves 2,160 units and 1,377 investors across 20 projects in the country.
When approached by the South China Morning Post, Andrew Chalk, Serious Fraud Office spokesman, said: “I’m afraid all I can say is that we are aware of the allegations, but can neither confirm nor deny interest in the matter.”
The National Fraud Intelligence Bureau, a police unit responsible for gathering and analysing intelligence related to fraud and financial cybercrimes, told some investors via email that: “Based on the information currently available, it has not been possible to identify a line of inquiry, which a law-enforcement organisation in the United Kingdom could pursue.” It said it was reviewing the case.
Stephen Fox, 72, one of the investors, said: “I feel the same as everyone else: frustrated and even more angry when even our law enforcers will not step up and take these people to task.