Search
  • Jonathan Bromage

The Great British Property Scam Pt3

The Solicitors Regulation Authority (SRA) has carried advice and warnings about solicitor’s involvement in Collective Investment Schemes since at least 2013. The SRA say:


“We have warned for a number of years about the risks posed by dubious or questionable investment schemes………Schemes are being promoted as involved in the routine buying of a property when in reality the buyer’s money is being used to finance a high-risk development or refurbishment. This is of particular concern in unusual developments such as the buying of individual hotel rooms, rooms in care homes, or self-storage units………We are seeing cases of solicitors simply processing transactions for buyers while adopting the language of conveyancing. The effect is to mask what is really happening………….The Serious Fraud Office have previously investigated losses of up to £120m arising from the promotion of self-storage schemes……………..Many of these schemes are likely to be "collective investment schemes" under section 235 of the Financial Services and Markets Act 2000. If those involved in the schemes are not authorised by FCA, they will be committing a criminal offence and are likely to be imprisoned.”


Unfortunately, those high-risk firms of solicitors chose to ignore the advice of their regulator and continue processing these types of transactions. Some created conveyancing factories doing nothing else but acting on the purchase of these schemes. One particular lawyer, a partner in a Yorkshire based firm was heard to say to a proposed developer, “I don`t care if you`re selling a collective investment scheme as you`ll go to jail not me.”

5 views0 comments

Recent Posts

See All

The Great British Property Scam pt 7

If those professionals mentioned above all support the property development arena it`s the developers who create it. Without developers the support acts wouldn`t exist. As the tsunami in 2008 gathered

The Great British Property Scam Pt6

However, what really started the fire began back in 2004. On Friday May 7th, 2004 Country Life magazine reported that a new hotel in Notting Hill was to offer guests the opportunity to save on hotel b

The Great British Property Scam Pt 5

Whilst there are lawyers around who will process these transactions the unscrupulous developers will seek them out. Even as this is being written there are UCIS`s being marketed and sold to unwary inv