Property developers banned for total of 54 years
Six directors have been banned for a total of 54 years after they misled more than 300 people to invest £12m into residential property developments
24 Dec 2018
The investigation conducted by the Insolvency Service centred on property development company Absolute Living Developments Limited. The company sold apartments in England off-plan to investors who were largely based in Asia. It is estimated that Absolute Living Developments secured at least £12m from people to invest in residential property schemes that were in various states of development.
Four of the directors are based in Malaysia, including Kien Cheong Yew who has been disqualified for 12 years, while the remaining two live in The Wirral and Kilburn. Daniel Mark Harrison, from Kilburn, was the last of the directors to be disqualified and he was banned for six years through a court order on 28 November 2018.
The developments were in in the North of England, predominately Bradford and Greater Manchester. However, people complained that having invested through Absolute Living Developments, the developments had not been fully completed and the apartments were unliveable.
Absolute Living Developments was wound-up in April 2016 following the presentation of a petition by Bradford Council due to unpaid rates and investigations that followed principally focused on four developments, three in Bradford and one in Manchester.
The company provided misleading and incomplete information about the developments to investors, meaning people could not carry out due diligence.
Absolute Living Developments had no ability to ensure the terms of contracts with investors could be met and failed to provide adequate safeguards for money obtained from investors.
For one of the developments, Absolute Living Developments requested completion payments from investors despite the development not being completed.
And the company signed charges over Absolute Living Developments’ assets, which meant that a third party owns them and there are no remaining assets in the liquidation to pay creditors.
An independent insolvency practitioner has been appointed in this case to investigate recovery of assets for the benefit of creditors. The liquidator’s actions are ongoing and to date they have received claims from creditors in excess of £68m.
Kien Cheong Yew from Kuala Lumpur, Malaysia has been disqualified for 12 years. A nine-year ban was handed to Adrianne Mei Kwan Nyau from The Wirral and Ameerali Bin Abas, Andrea Nicole Pacquiao Pieter, Chi Yeun Leong who are all from Malaysia.
Daniel Mark Harrison from Kilburn North-West London has been disqualified for six years.
Report by Amy Austin