Land Scam Firms Closed Down

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.

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Posted June 13th, 2011 in General, Trusts Wills and Probate |

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Selling Land Using an Attorney

There are many uses of a power of attorney and a distinct difference between a general or ordinary power of attorney and a lasting power of attorney which is used for circumstances when mental incapacity is a likely possibility or a more permanent arrangement is needed.

As an example of thew widespread potential uses of a power of attorney and that such authority can be given for even the most important of transactions, it is perfectly acceptable for a formal transfer deed on sale or transfer of land to be signed by an attorney as long as the Land Registry's rules are satisfied and it is likely that a buyer's conveyancing solicitor will also want to be satisfied of the authenticity of the power of attorney arrangement. A power of attorney is commonly used when there is a foreign seller or the seller is away on business or otherwise unavailable or perhaps in a trust situation.

The Land Registry requirements relating to accepting a power of attorney are :
  • the document must be correctly executed as a deed;
  • the document must be in force at the date of the transfer; and
  • the power must clearly and expressly give authority for selling the property.
If a power of attorney is over a year old, the buyer of a property can request evidence that it remains valid and has not been revoked.
For additional advice about  a power of attorney or conveyancing matters, please get in touch with us for a free initial discussion.

Posted June 13th, 2011 in property law |

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Torex Three Face Trial

Three former directors of software company Torex will face criminal charges brought by the Serious Fraud Office. The company’s former chairman, accountant and legal director will have to answer to charges of conspiracy to defraud.
In January, two other former directors of the company were convicted of the same offence after the company had reported more than £1.6 million in fictitious profits in the company’s accounts for 2005 and 2006. The two were jailed in February, disqualified from acting as company directors and ordered to make contributions to the costs of their prosecutions.
The fraud came to light when the (then) chief executive discovered it and acted as ‘whistle blower’.
If your business has concerns about possible fraud or you want advice about business fraud prevention, please get in touch to find out how we can assist. Click here to visit our business litigation page.

Posted June 10th, 2011 in Uncategorized |

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Claim on Wrong Basis Prevents Compensation for Loss

Damages for a breach of contract claim are confusing for many business people as recovering does not necessarily mean recouping all losses claimed for a breach. the general principle under English contract law is that damages will be awarded for loss of profits but there are other possibilities.

In a recent case, rather than a claim for loss of profits, the claimant sought damages on the basis of loss of value to business on a franchise agreement, which was ended by the franchisor. This in turn obviously made the claimant's company less valuable.
Whilst on a commonsense view, the claim as detailed above made sense, the Judge in the case rejected this method of claim and stated that it was much too hypothetical. Had the claim been made instead on the basis of loss of profit, it would have succeeded. Alternatively, if the consequence of the breach of contract was that the claimant's whole business failed, then a  different claim based on loss of value may have succeeded.
This case clearly highlights the technical nature of contract law and the need for good advice from experienced litigation solicitors. It also shows that when you make a claim, you should include different and alternative possible legal points so that if a Judge rejects one basis of argument you can still succeed on other arguments.
Please visit our litigation page or get in touch for further advice.

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Posted June 10th, 2011 in contract law |

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Government Consults on Further Changes to Employment Law

As part of its comprehensive review of employment law, the Government has launched a consultation on plans to introduce a new system of flexible parental leave from 2015.
Under the proposals, mothers would be entitled to 18 weeks’ maternity leave and pay, taken in one continuous block, around the time of their child’s birth. Once the early weeks of maternity and paternity leave have ended, parents would be able to share 30 weeks of additional parental leave, of which 17 weeks would be paid. Unlike the current system, this leave could be divided into blocks between the parents, with both parents able to take leave at the same time should they wish. Employers would have the ability to ensure that the leave is taken in one continuous period if agreement cannot be reached. They would also be able to ask staff to return for short periods to meet peaks in demand or to require that leave be taken in one continuous block, depending on business needs. In addition, there would be four weeks of parental leave and pay available to each parent, to be taken in the child’s first year, and the father’s current right to take 2 weeks’ paid paternity leave around the time of the baby’s birth would be retained.
Business Secretary Vince Cable said, “These measures are fairer for fathers and maintain the existing entitlements for mothers – but crucially give parents much greater choice over how to balance their work and family commitments.”
Flexible Working
The consultation also proposes extending the right to request flexible working to all workers who have been with their employer for 26 weeks. To achieve this, the system for considering flexible working requests would be made more adaptable, with the statutory process replaced with a new duty on employers simply to consider requests ‘reasonably’. A statutory Code of Practice would be published, setting out best practice on the benefits and adoption of flexible working, including guidance on what is a ‘reasonable’ process for handling requests. It is proposed that employers should be allowed to take into account employees’ individual circumstances when considering conflicting requests. There are no plans to alter the current 8 business reasons for a business to turn down a request.
Equal Pay
It is proposed that where an Employment Tribunal finds that an employer has discriminated on the ground of gender in relation to pay, it will have the power to order the employer to conduct a pay audit and publish the results.
The Working Time Regulations
Amendments to the Working Time Regulations 1998 (WTR) are also planned, including a tidying up exercise, to bring the WTR into line with recent judgments in the European Courts, so that annual leave entitlements can be rescheduled, and carried over to the next leave year, when a worker falls ill during planned annual leave. The proposal is to limit this to the four weeks’ minimum annual leave entitlement under the EC Working Time Directive.
The consultation document can be found here. The consultation closes on 8 August 2011.
Please visit the employmnet law part of this site. Resources can be found here and here.

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Posted June 10th, 2011 in Uncategorized |

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IHT – Prepare to Have Valuations Queried

A recent report from well known accountants Hacker Young indicates that HMRC are getting very tough when it comes to valuation of assets on estates which are subject to payment of inheritance tax (IHT). With many estates, it is necessary to obtain valuations on death and this is where the controversy can come in since the professional valuations can vary and there are often suspicions by the HMRC that certain valuations are favourably low in the hope that if and when those assets are sold, a co-operative valuation may lead to subsequent work on a sale. According to the Hacker Young report there wer nearly 10,000 investigations by the HMRC about IHT returns in 2010, which is a comparatively high figure based on the fact that only around 5% of estates are subject to IHT each year, which in turn may mean that investigations are carried out into a percentage of nearly 50% of situations where IHT is payable. Consequently, it is recommended that you take good advice on any IHT estate. we can help, so please get in touch and also, perhaps visit our wills and probate section on this site,

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Posted June 9th, 2011 in Family, Trusts Wills and Probate |

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Firms Fined for Illegal Workers

In a recent clampdown by the UK Border Agency (UKBA) 15 South West businesses were fined over £100,000 as a result of 28 illegal workers being discovered.
The latest tough action described above follows a significant number of prosecutions around the country, clearly signalling that the Border Agency will be active in pursuing these matters and that the amount of fines imposed will be significant.
Perhaps a small proportion of those employing illegal workers are unaware that the individuals are actually illegal workers but even in that circumstance, ignorance of the law will not constitute a defence which in turn means that it is vital to have good employer employment law advice. Do not take any chances in this area or regarding any other aspect of employment law, as the consequences, in both time, costs and stress for an employer facing an employment law problem are simply not worth it. We can advise and assist in this area, so please get in touch to discuss further.

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Posted June 7th, 2011 in Uncategorized |

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Meeting Long-Term Care Costs

HallOne of the often forgotten issues in retirement planning is the possibility of having to fund long-term care at some future time. Such care is means-tested and most care home residents of means will pay in full for their care. With an ageing population and severe pressure on government finances, this situation is only likely to get worse.


At present, a resident in a council care home must use their own capital to pay for their care until the capital is reduced to £23,000. After that, a contribution is made on a reducing scale until the resident’s capital is reduced to £14,000. This is done by the local council assessing each additional £250 of capital as producing an income of £1 per week. When the capital is reduced to £14,000, no further contribution is necessary.

The value of a house is not taken into account as capital for the first 12 weeks of residential care and is not taken into account at all if your spouse or civil partner continues to live there.

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Posted June 3rd, 2011 in General, Trusts Wills and Probate |

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Will Your Insurers Pay Out?

What happens if your home is unoccupied and is burgled or you need to make a different kind of claim on your home insurance policy ?
It is also easy to forget in a period of emotional strain that when a loved one dies, a house can be left empty for significant periods after the death of the owner or prior to sale.
More and more of us are away from our homes for increasing amounts of time whether due to being away on work or for other reasons. We all know that insurers will rely on technicalities wherever possible to avoid paying out for insurance claims, so it is now important to check the terms of  any insurance policy, they do vary and it is all too easy to assume that such policies are all completely standard.
Some insurance policies contain clauses which avoid cover if a property is not occupied for over 30 days, a period which can easily be exceeded. This may be extended by agreement with prior notice and extra cost.
The last thing you want is to become involved in any kind of protracted dispute with an insurance company and always be wary of going to court against an insurance company, they have deep pockets and tactics and economic strength will always be a significant feature of any court dispute.can also apply
For commercial law advice or advice on a legal dispute, please get in touch.

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Posted June 3rd, 2011 in Uncategorized |

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Cookie Law – Are You Compliant?

As readers may know cookies from websites are a vital source of information and data about visitors and this is gold dust for marketeers who rarely if at all on any other media can get such in-depth data to assist and tailor marketing drive and spend. however, there is a downside since this can amount to an intrusion of privacy and result in annoying adverts and pop ups appearing on websites based on your previous browsing habits and many people using the internet are unaware all of this is happening.

So, the law is being changed throughout Europe by virtue of the Privacy and Electronic Communications (EC Directive) amendment) Regulations 2011 which is now in effect. As with any legal changes this huge, it will probably take several years to gauge the degree of compliance  and the appetite for enforcement of this law.

We say this because the experience of data protection law is that the resources needed for meaningful investigation and enforcement are potentially so huge that most businesses have made a tactical decision that they won't be subject to enforcement.

We would obviously recommend that businesses do comply with this new law. If you need more information or advice about an intellectual property issue or commercial law generally, please do get in touch.

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Posted June 2nd, 2011 in Uncategorized |

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