Investor Action

An investor action proposal was distributed by Safe Or Scam to investors who had contacted us concerning the Essex and London Properties scam. To recap for investors the current situation is as follows:

  1. Essex Police have concluded their investigation and passed their report to the Crown Prosecution Service for a decision on whether or not to file criminal charges. The Police froze approx. £1.6m held in the escrow account and a property worth approx. £150k. They did not recover or restrain money from the architects or main parties involved in the scam or from any offshore bank account.
  2. The liquidation of Essex and London Properties Ltd was passed from Begbies Traynor to the Official Receiver. Begbies have claimed fees of around £63,000 which are to be paid from the assets of the limited company.
  3. In February 2018 Safe Or Scam wrote to Begbies pointing out that it was clear investors WERE NOT creditors of the limited company. In our opinion investors were creditors of the Scottish Limited Partnership (the “SLP”) and it was the SLP which was the creditor of the limited company, not the 500 or more individual investors. As far as we are aware Begbies did not seek a legal opinion on the matter, but continued to treat all 500+ investors as creditors of the limited company. 

In our opinion the work that Begbies carried out, and for which they intend to charge £63,000, was to assist a Police investigation.

Safe Or Scam has been working with a group of investors and we have obtained the opinion of a leading barrister on the Essex and London case. The barrister identified parties who have potential liability to compensate investors and the reasons why. The barrister also confirmed that we were correct. Investors are creditors of the SLP and not the limited company. The money and assets which have been frozen do not belong to the limited company. They belong to the Scottish Limited Partnership. The SLP is not in liquidation. It is the limited company which is in liquidation and it would appear it has little by way of assets. We are working with a UK solicitor at a large UK law firm and have shared our evidence with him. He believes there is a viable recovery action in this case and he would like to represent investors in the SLP.

If you are an Essex and London Properties investor and you would like more details on this investor action please contact us.

If you would like more information on Safe Or Scam investigations please visit the blog page on our website using this link