Victims of land banking fraud should report to Action Fraud

City of London Police – the lead force for fraud - has arrested three men in connection with a suspected million pound fraud where plots of land were offered for investment. Anyone who has lost money to the firms involved should report it to Action Fraud. [3 December 2010]

The arrests were made after detectives investigated the activities of two companies offering investments in plots of land. Staff from Browne Mackenzie, which is now in liquidation, and Lawrence Taylor & Co Ltd, are believed to have cold called investors and offered land for sale at sites in Scotland and Northampton.

During these conversations, or in prospectuses subsequently sent, investors are suspected of being misled about the potential of the land to rise in value.

Land banking fraudArrests in land fraud scam

On Tuesday 20 November, two men, aged 26 and 49, were arrested in Bromley and at a London office, and on Thursday a third man, 31, was arrested at his home in Lewisham. All three were detained on suspicion of conspiracy to defraud and money laundering and later released on bail.

Detective Inspector Andy Thompson, from the City of London Police, said: “Since taking on this case we have moved very quickly to make these three arrests. Further action is anticipated in the coming weeks.

“It is now very important for anyone who has invested in land offered by these companies to contact us as soon as possible. Even the smallest pieces of information could prove crucial to our investigation.”

What should victims of this land banking fraud do?

People who have invested in land offered by Browne and Mackenzie and Lawrence Taylor & Co Ltd should email the investigation team at landsalesenquiry@cityoflondon.pnn.police.uk

They will receive a questionnaire to complete and then send back to the City of London Police on the same email address.

Victims of this fraud should also report it to Action Fraud.

Protect yourself from land-banking fraud

The City of London Police is currently investigating a number of cases of suspected land banking fraud, and is working closely with the Companies Investigation Branch (CIB) to combat the crime.

People of all ages are being enticed into buying land, often in greenbelt areas, with the promise of rises in value of up to 20%.

The reality is that investors are being misled and the profits will never materialise.

Anyone considering making land investments or any type of investment with the promise of big returns should complete some simple checks before entering into any agreement:

• if it seems too good to be true, then it probably is. High returns can only be achieved with high risk
• if you’re suspicious about an investment’s authenticity, you should investigate the company’s status and contact details.  This can be done by searching the internet, talking to the local council planning department or contacting the local Trading Standards branch
• the Financial Services Authority (FSA) regulates stockbrokers and investment firms based in the UK. You can check the agent or firm’s authenticity by visiting the FSA’s:
  • Register of authorised firms
  • List of unauthorised firms and individuals
  • List of unauthorised overseas firms
• Alternatively, call the FSA’s consumer helpline on 0845 606 1234.

For more information about this land-banking fraud, visit the City of London Police website.

Please note: Action Fraud is not responsible for the content on external websites.

To report a fraud, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.

See also:

Land banking scams

Share sale fraud