Trio involved in buy-to-let property investment fraud sentenced

Date published: 12 January 2012

Three men have been sentenced for their part in a buy-to-let property investment fraud.

Raymond Harold Abramson, of Hampstead Drive, Whitefield pleaded guilty to conspiracy to defraud, a charge of being bankrupt engaging in trade and an undischarged bankrupt being concerned in the management of a company.

Mark Lenton Jopson, of Burnley, pleaded guilty to conspiracy to defraud, further charges of aiding and abetting a bankrupt engaging in trade and aiding and abetting an undischarged bankrupt being concerned in the management of a company are not proceeded with and will lie on file.

John Edwards, of Bury pleaded guilty to conspiracy to defraud, further charges of aiding and abetting a bankrupt engaging in trade and aiding and abetting an undischarged bankrupt being concerned in the management of a company are not proceeded with and are to lie on file.

At Manchester Crown Court, Crown Square, on Wednesday 11 January 2012, Abramson was sentenced to three years in prison, Jopson to two years and seven months in prison and Edwards to 10 months in prison suspended for two years. He was also ordered to carry out 200 hours community service.

The fraud involved houses being sold at inflated prices on the promise of guaranteed tenancy and refurbishment that never materialised.

It is believed the fraud amounted to a figure in excess of £1million and involved 21 properties and 13 victims.

Abramson spearheaded the scam and due to previously being declared bankrupt used the alias Trevor Smith.

The trio operated under at least three names - Sanderson Property Company (Ltd), Robert Thornton Properties and Mark Jopson Properties - and were based on Kay Street, Bury.

An advert would usually be placed in a national or local newspaper with a telephone number, offering houses for sale at cheap prices.

Prospective clients would be sent literature about the scheme, which claimed European and government grants were available in the area where the houses were and that the regeneration of the area would enhance the value of the houses they purchased

The company also claimed to have an agreement in place with the local health authority that would guarantee rental income.

Clients would then come to Manchester and Edwards would take them to areas in the Burnley and Pendle and show them the houses they would be ‘buying’, however some of the properties were not owned by the trio.

Further houses under renovation and those that had been rented to a tenant were also shown to clients.

Throughout the ‘tours’ of the houses, Edwards would constantly push the regeneration programme as a major selling point, telling clients renovations would be finished and tenants in place within six weeks of a sale being completed.

Clients who bought into the scam paid for the improvements in advance and also an inflated house price to reflect the guaranteed tenancy, which in fact was not in place.

On most occasions improvements were not made and no tenants were found. Any refurbishment done was minimal and not to the value paid.

As part of the investigation detectives uncovered a number of bank accounts in Jopson’s name.

Between January 2003 and January 2009, deposits to the value of £519,982.30 were paid into one account. Another had deposits of £188,475.71 made over a two year period between November 2006 and 2008. Deposits of £169,520.75 were paid into a third account, £142,027.84 into a fourth and £48,398.33 into a fifth.

The total amount of deposits through just these five accounts in a period of six years is £1,068,404.90

Detective Constable John Lonsdale, from the Fraud Investigation Unit, said: “Abramson, Jopson and Edwards worked together on this meticulous scam, which they delivered over a prolonged period of time, to deliberately defraud their victims.

“Their sales pitch was plausible and attractive to clients who had no reason to doubt they were anything but genuine.

“All the victims have lost something as a result of the defendants’ greed and many will not recoup their initial outlay as the houses are in poor areas and in varying states of disrepair.

“This has been a lengthy and complex investigation but I hope the victims find some comfort knowing the defendants have today been sentenced for their involvement in this scam.”