Land Investment Scam
Published / Last Updated on 22/05/2011
Land Investment Scam.
A former employee of a landbanking brokerage, Property Partnership has contacted the BBC outlining the strategies used to sell almost worthless strips of land to unsuspecting investors. Many investors were persuaded to pay tens of thousands of pounds for land that is unlikely to ever be built on.
Radio 4's Money Box has investigated a strip of land bought by one investor in Northamptonshire for £10,000 in September 2009, but a local estate agent now values the land at just £75. The company believed to be controlled by Scott Assemakis, a Kent businessman is now in liquidation.
According to the Financial Services Authority (FSA), they have closed down 5 land investment schemes in the past 12 months, in which £42m had been invested.