Land Scam Firms Closed Down

Posted: 13th June 2011

Stone wallA scam which traded on the greed of the gullible has been closed down by the the Financial Services Authority (FSA) after nearly £4 million was ‘invested’ by people seeking returns promised to be between 200-300 per cent.

The ostensible investments were small plots of land that it was claimed would be sold at tremendous profits. Normally these were presented as being potential ‘ransom strips’, areas of land which would have to be acquired for large property developments to go ahead.
These were never likely to achieve the values claimed. Indeed, one site being marketed is in a designated area of outstanding natural beauty, making planning permission for development a near impossibility.
After making a series of injunctions against so-called ‘landbank’ companies, the FSA has started to issue winding-up proceedings against them
However, because the businesses were unauthorised investment schemes, investors are not covered by the Financial Services Compensation Scheme and are unlikely to get their money back. An FSA spokesman commented that ‘by the time we can catch up with the operators, most of the money has disappeared and investors are left with land that has a value which simply does not reflect the money paid for it’.
If an investment opportunity seems too good to be true, it is normally because it is not true.
A scam which traded on the greed of the gullible has been closed down by the the Financial Services Authority (FSA) after nearly £4 million was ‘invested’ by people seeking returns promised to be between 200-300 per cent.
The ostensible investments were small plots of land that it was claimed would be sold at tremendous profits. Normally these were presented as being potential ‘ransom strips’, areas of land which would have to be acquired for large property developments to go ahead.
These were never likely to achieve the values claimed. Indeed, one site being marketed is in a designated area of outstanding natural beauty, making planning permission for development a near impossibility.
After making a series of injunctions against so-called ‘landbank’ companies, the FSA has started to issue winding-up proceedings
Trading Estate form the Air
against them
However, because the businesses were unauthorised investment schemes, investors are not covered by the Financial Services Compensation Scheme and are unlikely to get their money back. An FSA spokesman commented that ‘by the time we can catch up with the operators, most of the money has disappeared and investors are left with land that has a value which simply does not reflect the money paid for it’.
If an investment opportunity seems too good to be true, it is normally because it is not true.