Six suspects have been arrested during a search operation on 19 properties across England, with three suspects held in custody to appear before magistrates yesterday.
The SFO swoop surrounds an investigation into suspected advance fee fraud and commercial rent fraud. The searches, involving more than a hundred investigators and police officers, aimed to prevent further loss to victims.
Operating as Gresham Ltd and Gresham Finance (London) Ltd* the company offered commercial loans of up to GBP 250 million. It promoted its services by advertising in newspapers, magazines and on the internet. Applicants for loans were charged between five and fifty thousand pounds for a due diligence check. Most of the applications came from overseas for commercial projects such as developing resorts and building hotels.(in Austria, Turkey and other countries).
Once an applicant had paid the due diligence fee there was a next-stage payment, badged up as a security deposit, set at between one and five per cent of the loan amount. Various other company names were also used to offer a similar service
The same suspects were also involved in a retail property renting business operating as Gresham Ltd, Park Regent Ltd and Castlereagh London Ltd**. The suspects used a complex number of company names in their business dealings, including the following: 45 Oxford St Ltd, Alliance Trust***, Renaissance Trust, Cutting and Company (Investments) Limited and Paul Street Media Limited.
Across the country in London, Surrey, Cheshire and Derbyshire, 18 search warrants were employed in a mixture of commercial and residential properties.
The searches involved 70 personnel from the SFO and 40 officers provided by the City of London Police, the Derbyshire Constabulary and the Cheshire Police.
Five men and one woman have been arrested and the The SFO continues its investigation into the case.
The SFO would like to hear from anyone who believes that they might have information useful to the investigation. The number to call is 0207 239 7378.
*Gresham Finance (London) Ltd is not to be confused with Gresham Finance Ltd, which is an unconnected company and not under investigation.
**Castlereagh London Ltd is not to be confused with Castlereagh Ltd of Dublin, which is an unconnected company and not under investigation.
*** Alliance Trust PLC, the FTSE 100 investment trust is also an unconnected company and not under investigation
Comments
About time ! these people have been ripping off clients and brokers for far too long. I never did business with Gresham nor did I ever introduce clients to them partly due to my fears about advance fee charging and they would never give me a straight answer to my questions, this sort of thing has gone on too long. All too often brokers do not do proper due diligence on who they are introducing their commercial finance clients to and this case highlights the dangers of working in this market without a good understanding of who you are doing business with. Work with NACFB brokers and if you are not comfortable with what you are being told ask more questions or get second option.