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Case study

The one where the
great investment due to a fraudulent tenant…

Advised investors who were misled into purchasing a commercial property that was said to be a sale and lease back by its owner.  The decision to make the acquisition, for approximately £1m, was founded on a fraudulent misrepresentation. The vendors made assurances that it was selling the property to lease it back from the client investors; in fact, the vendor company never intended to take occupation of the lease and so the misrepresentation as to the “lease-back” fraudulently inflated the property transaction by £500,000. 

The inflated value on the transaction were the monies gained fraudulently to the benefit of the individual directors of the vendor company perpetrating the fraudulent scheme. 

Advice provided led to the clients obtaining a Freezing Injunction against one of the directors for more than £1m, four years after the transaction occurred following discovery of new evidence.  The injunction was later extended to assets of a company said to be a ‘repository’ for the assets of one of the directors, despite that company not being party to the proceedings.  Judgment was obtained more than £2m and recovery, through enforcement measures against the individual directors, secured recovery of the loss suffered.

  • Case Study
  • Sector
    Real Estate
  • Service
    Fraudulent Misrepresentation
  • Service
    Freezing Injunctions
  • Service
    Non-Party Disclosure

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