Insolvency Service
 Printable version
|
 E-mail this to a friend
|
High Court orders two more unscrupulous land banking companies into liquidation
Two companies that mis-sold green belt land for investment to the public were this week ordered into liquidation in the High Court on grounds of public interest following an investigation by Company Investigations ("CI") of the Insolvency Service.
The investigation found that Montrose Partners Limited and The Montrose Partnership Limited had sold some 63 plots of land to members of the public at four sites generating an income of around £372,868.
The vast majority of the sales were made by The Montrose Partnership Limited following Montrose Partners Limited’s difficulties with a similarly named but unconnected business. False and misleading statements were made to potential investors claiming the land being sold would deliver significant investment returns as it was likely to receive planning permission for residential development. There was no likelihood of this happening.
Both companies were closed down on 17 December 2010 by The Insolvency Service’s enforcement action (see note 6 below).
Commenting on the case Company Investigations Supervisor Chris Mayhew said:
"The Insolvency Service is determined to come down hard on directors who set out to rip people off by deliberately misrepresenting the investment opportunity on offer.
These schemes are designed to make those behind them rich, not investors; not one of the land banking companies we have investigated and shut down has made any profit for the investor.
I would urge people who are cold-called and invited to invest not to be pressured into a decision and to seek independent professional advice".
Ends
Notes to Editors
1. Montrose Partners Limited was incorporated on 21 August 2009. The registered office of the company was at Union House, 65-69 Shepherds Bush Green, Shepherds Bush, London, W12 8TX. The recorded directors of the company are Mr Jose Emilio Gongora and Mr Dean Benjamin Straker. There is no recorded company secretary.
2. The Montrose Partnership Limited was incorporated on 28 October 2009. The registered office of the company was at Hendford Manor, Yeovil, Somerset, BA20 1UN. The sole recorded director of the company is Mr Jose Emilio Gongora. There is no recorded company secretary.
3. The petitions to wind up both companies were presented on 16 December 2010 under the provisions of section 124A of the Insolvency Act 1986. The grounds for winding up the companies were their lack of commercial probity and continuing a method of trading for which an earlier related company, Willow International Limited, was wound up on grounds of public interest.
4. Willow International Limited was one of five connected companies wound up on 31 March 2010 upon public interest petitions presented by the Secretary of State – see news release “High Court orders five land banking companies into liquidation” issued on 2 April 2010.
5. Mr Gongora was previously a director and shareholder of Willow International Limited and Mr Straker was previously a director and shareholder of one of the other connected companies wound up on 31 March 2010, Allied Investment Management Limited.
6. On the application of the Secretary of State the Official Receiver was appointed provisional liquidator of Montrose Partners Limited and The Montrose Partnership Limited on 17 December 2010.
7. Both companies marketed plots of land at four different sites:
See attached document.
8. In ordering Montrose Partners Limited and The Montrose Partnership Limited into liquidation on grounds of public interest on 6 July 2011 Mr Registrar Baister said:
"These companies were engaged in the business of selling small plots of land to the public as an investment, a practice commonly referred to as ‘land banking’. The Secretary of State’s grounds for winding up both companies are clearly made out, namely that the information given to the public was misleading and unfounded as the land being marketed by these companies was unlikely to be granted planning permission and/or is unsuitable for housing development and the huge increase in the price paid by investors was so unusual that it is unlikely they would break even. The information given to them was plainly misleading and it is plainly in the public interest to wind up the companies, more so given the continuing method of trading as that carried on by a previous company Willow International Limited. Plainly those involved in the companies’ management must have known that it was objectionable to carry on the same business practices. Both companies have been placed into provisional liquidation and have not opposed the winding up action and I am fully satisfied that the companies should be wound up and I do so order"
9. High Court public interest winding up action has been taken in all against 15 apparently unconnected companies that between them raised around £4.2 million from the public - see news releases "High Court orders two unscrupulous land banking companies into liquidation" issued on 13 April 2011 and “High Court orders six unscrupulous land banking companies into liquidation” issued on 1 July 2011.
10. Company Investigations, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation & Skills ("BIS"). All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit , Tel No 0207 637 1110: Email: piu.or@insolvency.gsi.gov.uk
11. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.
12. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
13. Media Enquiries should be directed to:
Ade Daramy, Press Officer on 020 7596 6187
Contacts:
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk
