Scam of the week: the land banking scam | Moneywise
Britons have been told to beware of 'landbanking' scams after figures released today showed that they had doubled in just two years. The directors bought the land for a mere £, yet sold plots that totalled almost than £3m. The regulator first charged the men with landbanking fraud and carrying of one of the largest FCA investigations to date: Operation Cotton.
However, an FSA spokesperson admits that recovering the money would be "difficult" as most of the cash will have been spent.
These companies marketed residential-sized plots of undeveloped land at six sites across Somerset, Lincolnshire, Warwickshire, Northamptonshire, Gloucestershire and Greater London.
The plots were sold at up to 31 times cost price, with investors being told they could make big returns in two or three years if planning permission was granted.
FCA bans six men over £m landbanking Ucis scam - Money Marketing
But the authorities found there was little chance of planning permission ever being granted because the plots were on green belt land or had other development restrictions imposed upon them. In any case, the land itself would have had to increase tenfold in value just for investors to get their money back. Chris Mayhew, company investigations supervisor at The Insolvency Service, says: Pressure Selling Land investment scams often involve telephone pressure selling techniques, perfected by con artists schooled in 'boiler room' scams where high-pressure telephone salesmen use a potent mix of friendliness, coaxing and bullying to sell worthless, overpriced or even totally fictitious shares to investors looking to make a quick killing.
The same people often sell a variety of investments: Some of these companies even advertise for sales personnel in newspapers. Keep up to date with all the latest scams in our Scam Watch feature False claims The government says green belt land is not under threat.
Yet land investment websites often exploit the confusion between the two terms to bolster their investment argument. Therefore, the case is strong in stating that investing in Greenbelt land would be a wise move to make in U.
- Scammers target lonely hearts on dating sites
- Land 'scams' techniques revealed
- Scam of the week: the land banking scam
This is simply a false claim. The government has said green belt land would not be compromised. Victims, says Miles, are not stupid and may be working in professional jobs.
He asked them to pay the transfer fees saying they would be reimbursed.
Warning to investors as land-banking scams top £200m
Agbonifoayetan and another suspect met the women a number of times to collect the funds. She used up her life savings, pawned jewellery, sold her car and took out loans to pay the costs, which were transferred into accounts in Ghana. Police are now seeking a compensation order to recoup some of the money.
And you will be showered with compliments. The fraudster will typically try to coax you offline away from the security of dating sites so they can isolate you. Some weeks after initiating contact, they will ask for money — possibly for an operation or some administration.
They may say they they are on the cusp of visiting but something always gets in the way. If it is for a medical procedure, what hospital is the operation taking place in? Who is the doctor? Tell others that you are talking to someone online.
Tell them if you are asked for money.