Property Fraudsters Scammed £1.8 million in Mortgages

by Property118.com News Team

9:22 AM, 6th January 2012
About 8 years ago

Property Fraudsters Scammed £1.8 million in Mortgages

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Property Fraudsters Scammed £1.8 million in Mortgages

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.



Comments

Kelvin Kingsley

11:33 AM, 6th January 2012
About 8 years ago

I would have thought at least one person would have gone to jail over this as its serious fraud. It also doesn't stop the directors using their wifes name as directors when forming a new company in the near future. So I hate to say it, just school boy punishment like a cane to the bum is all that's been applied here! Regards Property Maverick

18:03 PM, 7th January 2012
About 8 years ago

Its an absolute scandal that no jail terms were handed out. Are we to accept that someone can walk away with £1.8m !! and a smack on the wrist. I can only imagine how disappointed they are, not being able to be company directors. It must make that sunset cocktail in the carribbean really hard to swallow.
Its an invitation for others to follow suit.  


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