Developer gets 14-year ban for property ‘ponzi’ scheme

Grant Prior 1 week ago
Share

The mastermind of a £13m property ‘ponzi’ scheme has been banned from being a director for 14 years.

Mitchell Mallin, 34, from Chelmsford was director of Essex and London Properties Limited.

The company targeted investors with the promise that their funds would be used to purchase dilapidated properties in London and Essex before renovating them and selling them for a profit.

Over three years, Essex and London Properties Limited obtained more than £13m in investments from investors.

Hundreds of people invested in the company providing funds between £5,000 to over £100,000.

But only one property was ever purchased for renovation and instead the majority of investors’ money was siphoned to overseas bank accounts.

The company was wound up in the public interest in September 2018 following an investigation by the Insolvency Service.

The investigation found that Mallin’s company had failed to invest the £13m and used the funds provided by new investors to directly pay returns to previous investors.

More than £4.75m of unverified payments were also made to third parties. At the company’s winding up, creditors were owed more than £11m.

Mallin has now been banned from acting as a director for 14 years which means he cannot, directly or indirectly, become involved, without the permission of the court, in the promotion, formation or management of a company.

Neil North, chief investigator at the Insolvency Service, said: “As the period of disqualification reflects, obtaining funds from investors and using them in a dishonest manner is a serious matter and contrary to the conduct expected of a company director.

“Companies have limited liability, which is a privilege, not a right and we have strong enforcement powers which we will not hesitate to use to remove that privilege from dishonest or reckless directors.”

Latest news

Careys dropping Scudder demolition name during restructure

Careys to focus on core civil engineering and dry lining work
33 mins ago

Bidders day for £254m M5 Junction 10 scheme

Gloucestershire County Council will lead procurement of major upgrade scheme
48 mins ago

EcoWorld London to close construction arm

Developer part-owned by Willmott Dixon restructures
2 hours ago

Fulcrum wins job to power up £85m mega-greenhouse

Multi-utility outfit will hook-up one of the country's largest greenhouse projects
29 mins ago

Bezos firm picks UK to build £300m fusion test reactor

Work will begin in 2022 on large-scale nuclear fusion test facility in Oxfordshire
2 hours ago

Hill bags job to revamp Shredded Wheat Factory

Plans also in for over 1,200 homes in several blocks around the iconic factory buildings
2 hours ago

HS2 starts search for £500m phase 2a delivery partner

Design and delivery partner will manage design and construction of £4.5bn next leg to Crewe
1 day ago

Payroll tax cheat ordered to repay £1.7m

Former tax consultant Mike Huges stole £6.9m from construction workers' pay packets
2 days ago

Plans in for £300m Blackpool leisure scheme

Build back better plan to transform town seafront with major visitor attractions
1 day ago

Wates Residential hires London housing veteran for expansion

Nick Williams takes new production director role to deliver growing pipeline of work
1 day ago

Network Rail unveils next generation of bridges

Lightweight,modular crossing slashes construction times
1 day ago

Hunt starts for A303 Stonehenge technical consultant

Delivery Assurance Partner role will be worth £60m over five years
2 days ago

Amey suffers £98m loss after further contract provisions

Impact of Covid and future loss provisions set restructuring plan back
2 days ago

Covid blamed for record size of construction disputes

75% of survey says disputes arose from claims specific to the impact of the pandemic
2 days ago

Severfield boasts £300m order book after resilient 2020

Firm says it is continuing to manage steel price and availability challenges
2 days ago

Go-ahead for Liverpool £60m Anfield Road stand

Buckingham Group set to build 16,000-seat stand taking Anfield capacity to 61,000
3 days ago

Crane supervisor hit on head during staircase delivery

Serious accident on £250m Lewisham Gateway phase 2 site
3 days ago

Clarion to build resi scheme at old Boddington’s Brewery site

Construction on 442 apartments in central Manchester set to begin mid 2022
2 days ago

AGD upgrades foundations for Antony Gormley’s ‘Iron Men’

Piling rig shores up iconic statues: Video
3 days ago
AGD Equipment Ltd

EU worker shortages driving up London labour rates

CIS wages start to rise in the Capital ahead of EU Settlement Scheme deadline on June 30
3 days ago

Pagabo readies market for new £1.6bn civils framework

Bidders day for new civils and infrastructure projects framework
4 days ago

Bouygues bags £30m Swansea hi-tech office job

Work to start this summer on 71/72 Kingsway office in city centre
3 days ago

Willmott Dixon to install car chargers at all sites and offices

Charging infrastructure being installed as hundreds of staff turn to electric cars
3 days ago

Trio win £1.6bn Defence Estate hard FM deal

Engie/Serco JV wins two of four regional maintenance and repair deals
4 days ago

Kier wins £17m upgrade of Lewis Hamilton’s old school

Work to start on two new blocks at Saint John Henry Newman Catholic School in Stevenage
3 days ago

Anderson lands £10m Redrow groundworks deal

Latest win tops "superb few months" for residential contractor
4 days ago

Nmcn facing make-or-break refinancing decision

Contractor will "consider its remaining options" if talks fail
4 days ago

Ferrovial UK arm edges into profit after five years of losses

Ferrovial Construction UK returns a pre-tax profit of £1.5m
4 days ago

Emirates Old Trafford cricket ground plan approved

Work to start early next year on final part of Emirates Old Trafford £60m expansion
4 days ago

BAM Nuttall counts on record orders after 24% profit fall

Three-quarters of Nuttall's £3.4bn order book is two-stage negotiated contracts
4 days ago

Contractor services