Warning as ‘landbank’ scam dupes investors

Six companies that tricked the public into investing in plots in Liversedge, West Yorkshire have been closed down by the Insolvency Service.

At least 43 plots were sold to investors for around £11,000 each.

They were told that planning permission was being sought and the value of each plot would increase as high as £120,000.

In reality, there was no planning application and, had it been sought, was very unlikely to be granted.

The companies traded from premises at 70 High Street, Newton-le-Willows, Merseyside and the land was described to investors as Pennine View Project.

Two of the six companies had addresses in Yorkshire. These were Green Crest Homes Limited, Holmfield Mill, Halifax, and JCB Marketing Limited, of 72 Flemingate, Beverley.

Insolvency Service investigators have urged investors to be wary of such ‘landbanking’ scams.

Colin Cronin, of the Insolvency Service, said: “These companies persuaded members of the public to invest thousands of pounds in plots of land that they falsely claimed that they were seeking planning permission for.

“The companies said this planning permission was highly likely to be obtained and would result in a significant increase in the value of the land.

“In reality, no steps had been taken to obtain planning permission and there was very little prospect of any being granted.

“The Insolvency Service will take firm action against companies and their directors when the public are deliberately misled in this manner.

“The advice to anyone who is approached to invest in land in this way is to take time to reflect, seek independent advice and research the company in question. If a scheme sounds too good to be true, it usually is.”