'Property fraud' inquiry dropped against ex-Leeds United director Simon Morris

The Serious Fraud Office (SFO) said it was ending its lengthy investigation into the former Leeds United director on the ground of insufficient evidence.

An SFO spokesman said: "Following an investigation into suspected property fraud regarding the sale of "buy-to-let" properties by the former Leeds based Morris Group Ltd (in liquidation), the SFO has decided there is insufficient evidence to bring a prosecution and has discontinued the case."

As well as Mr Morris, a number of other people arrested during the course of the inquiry will also not face any further action.

The allegations revolved around claims Morris's company sold "buy-to-let" properties at inflated prices which left the buyers unable to cover mortgage payments when expected rental income did not materialise.

Last night Mr Morris, whose company collapsed in 2008 with 50m of debts, issued a statement which said: "While today's announcement is good news for myself I do not feel in any mood to celebrate.

"I have always maintained my innocence and my life has been made extremely difficult by this investigation and the manner in which it has been conducted.

"My career, my business and my personal life have been devastated by the last three years.

"I can feel vindicated today. But I still have a lot to do to restore my life to what it was before this whole unfortunate series of events began.

"I will now be spending a lot of time looking at the allegations and how the investigation was conducted before deciding what I should do next.''

Mr Morris, 33, was also made bankrupt last year after being listed eighth on The Sunday Times Young Rich List as recently as 2007.

In 2004, he had become Leeds United's youngest director and was later unsuccessful in a bid to wrest control of the club from current chairman Ken Bates.

By 2006 his company's turnover was more than 80m with about 8m lavished on headquarters in Brewery Wharf.

The SFO said information acquired on some individuals during the course of the inquiry would be forwarded to legal and accountancy regulatory bodies to see whether it warranted further investigation.