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Directors of a property investment company scammed almost £1.8 million in mortgage loans against homes worth around just £960,000 by passing off false valuations to a bank.
Ring-leader Mahmood Anwar Yaqub was banned from acting as a company director for 15 years by a judge at Birmingham County Court after an investigation by the Insolvency Service.
The court was told that Yaqub, 48, and two other directors of Birmingham company Maple Grow Ltd, obtained mortgage valuations on six properties for £2,590,000 when Yaqub knew that the properties had an actual value of around £962,232.
In February 2008, these directors received £1,767,500 from Yorkshire Bank for loans against the properties.
Yaqub and the directors knew the real value of the properties because they had previously bought them and sold them to their company.
Five of the homes have been sold for £532,000, while the remaining home is valued at £45,000.
Maple Grow went into administration in March 2009 owing around £3.5 million.
Besides Yaqub’s ban, the four other directors of Maple Grow have already offered disqualification undertakings totalling 32 years. Insolvency Service investigator Claire Entwistle said: “The order given in respect of Mahmood Anwar Yaqub sends a clear message to other company directors: if you run a business in a way that is detrimental to either its customers or its creditors, you will be investigated by the Insolvency Service and removed from the business environment.”
The two directors involved with the mortgage fraud were Muhammed Usman Mughal and Mohsin Afsar. Mughal has agreed to bar himself from taking a company directorship for 14 years and Afsar for 12 years.
The other two directors of Maple Grow Ltd were Ravinder Bhardwaj and Raj Sidhu. Both gave undertakings not to act as company directors for three years.
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