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View Full Version : Is this fraud - what should tenants do?


99sc1610
15-04-2008, 14:15 PM
People at my uni are having trouble over a letting agent who took lots of money up front then ended up closing overnight. The story is too long to mention in detail so I have included a link below.

http://www.gazette-news.co.uk/news/l...n_the_cold.php

Now, i downloaded the most recent company accounts earlier and notice that there is a section entitled 'dealings with directors' which shows that the company is owed over £120,000 by its own director - accounting for approx 95% of the losses the company has made prior to closing down. Landlords havent been paid for months, and deposits have been placed into individual bank accounts instead of the protection scheme

Any thoughts?
Colincbayley
15-04-2008, 15:00 PM
Has got to be a matter for the Police to investigate!
jta
15-04-2008, 15:11 PM
It is possible the guy has been shovelling his own money into the business in an effort to stay afloat, that would go down as a loss on the accounts.
Just being a devil's advocate!
thevaliant
15-04-2008, 15:38 PM
It is possible the guy has been shovelling his own money into the business in an effort to stay afloat, that would go down as a loss on the accounts.
Just being a devil's advocate!

No, if the company is OWED money, the director is a debtor of the company, or the company is a creditor of the director.

Probably wrongful trading..... DTI investigation I suspect and you'll never hear about it again.