The former boss of a Redditch and Worcester-based lettings agency has been given a suspended jail sentence for fraud offences which led to hundreds of clients losing money they had paid as deposits.
Brandon Weston, 42, of White Ladies Aston, near Worcester, was given a 12-month term suspended for two years and told to carry out 250 hours of unpaid community work when he appeared before Judge Richard Rundell at Worcester Crown Court.
His co-accused, David Christopher Williams, 47, of Church Lane, Whittington, near Worcester, received an eight-month jail term, suspended for two years, for forgery. He was ordered to carry out 150 hours of unpaid community work.
Weston was formerly the managing director of Premier Places (Redditch Letting) Ltd at Church Green, Redditch, and Premier Places (Letting) Ltd in Worcester. He had previously admitted two counts of committing fraud between January 2007 and February 2009 to make a gain for himself or another, by making representations to the National Approved Letting Scheme (NALS) which he knew to be untrue or misleading.
He also admitted two further counts of fraud, whereby he made a representation to The Dispute Service which he knew was or might be untrue or misleading, namely that Premier Places held tenancy deposits in a ring-fenced client account. The offences were committed between April and July 2007.
Williams, who provided Weston with accountancy services, admitted three counts of making a false instrument. The charges related to him forging the signature of an appropriately qualified accountant so that Weston could submit an accountant’s report for Premier Places (Redditch Lettings) Ltd to NALS.
The offences covered a period between June 2007 and February 2008.
The case is among the first of its kind investigated by West Mercia Police.
Detective Constable Danielle Harrison, from the force’s Fraud Squad, said that a year-long investigation was carried out after financial irregularities at Premier Places in Redditch were reported to West Mercia’s Economic Crime Unit in March 2009.
She said that in 2007 it became a legal requirement for landlords and letting agents to register tenants’ deposits with one of three national schemes. Premier Places registered with The Dispute Service and also with NALS, a voluntary scheme offering peace of mind to landlords and tenants. NALS accreditation was based on meeting industry standards for customer services.
The strict criteria required clients’ monies to be protected by being held in a separate ring-fenced account. An accountant's report had to be submitted annually by a chartered or certified accountant confirming compliance with NALS standards.
DC Harrison said: “Our investigation found that Weston had not kept all clients’ tenancy deposits in a ring-fenced account as he should have done and was used in other business accounts.
“In 2009 he attempted to sell Premier Places (Redditch Letting) although that was never finalised. Their tenants and landlords passed to other firms but tenants were left with no deposit money held for them, leaving them substantially out of pocket.
“Williams, who had been advising Weston regarding his businesses and finances, forged the signature of a qualified accountant on documentation from Premier Places submitted to NALS which would enable the firm to maintain accreditation even though it was not complying with NALS standards.
“The net effect of Weston’s crimes is that hundreds of clients have lost amounts ranging from £400 to more than £1,000 in some instances. This also includes landlords who reimbursed tenants with their lost deposits when their tenancies ended.
“We regularly get calls from people worried about having to find that money which they rely on to be able to pay a deposit for their next tenancy. It should have simply been held in a ring-fenced account so it could be returned to them. It can be a month’s wages for some people.
“It has caused them significant hardship in some cases as well as inconvenience and misery.
“We hope this case will serve as a warning to other businesses who may be tempted to commit fraud at the expense of their clients.
“Hopefully it will also reassure people that although such offences are rare, when they do come to our attention we will investigate them thoroughly and ensure that those responsible are brought before the courts.”
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Comments
lion-o: "This was a company director and his accountant involved in defrauding their own clients."
Trouble is, "defrauding" sounds harmless.
Let's try the correct terminology in order to provoke the correct reaction.
STEALING FROM!
A pathetic sentence, especially when you consider all the tenants out of pocket, in some cases unable to move on because of the amount lost. A suspended sentence? This was a company director and his accountant involved in defrauding their own clients. No wonder the public have no faith in our industry...even when caught they appear to get away with it.
The trouble is no-one really wants to rock the boat, even you! If things are as you say and you are sure of that what have you got to lose by outing them?
Pheonixing is nowhere near as bad as stealing 203 deposits so the agent involved has very little to fear from the rozzers. What have NFOPP and TPO got to say about it? my guess would be not a lot.
@ 25 quid credit check reveals all
No, not a software company - a firm of agents who have been trading for around 20 years but since 2008 have folded two companies each time owing people money mainly HMRC but a few smaller suppliers as well. No one who deals with the firm on a regular basis would even be aware that the company folded as the trading name of the firm has not changed. What I can't understand is why HMRC and others don't investigate further as they will see that despite the company going bust the firm is still trading in exactly the same way and the only reason that there was no money left there to pay the bills was because the directors had spent it on fast cars and holidays! Great business plan, I wonder if the dragons would be interested............
"have been trying to interest various authorities in a firm whose holding companies have twice been liquidated and who are still trading despite having gone under owing HMRC and others vast sums."
Name names! Are you referring to the software firm who pheonixed owing HMRC £107,000 and now hold themselves up as a bastion of good standards in Property Management?
Letting is really a tricky business. As a landlord you go to a letting agent expecting not only a great service but to deal with trustworthy and professional people. It obviously has not happened in this case and he is lucky to get away with just a suspended sentence (curiously enough much softer sentence for more gains than most people sentenced to up to 4 years in the recent London riots for as little as taking a 20p bottle of water...hmmmmmm).
Anyway for letting agents and landlords interested visit my website www.rentdirectuk.co.uk and post your lettings for free and view our tenant database
At least there was a prosecution. I have been trying to interest various authorities in a firm whose holding companies have twice been liquidated and who are still trading despite having gone under owing HMRC and others vast sums. The liquidators it would seem have no obligation to check the state of the firms client account before quickly underselling the good assets of the firm back to another company owned by relatives of the original directors! They are not ARLA or NALS and so it would seem the client account can be treated as a long term loan facility as they have never even heard of deposit protection.
Unless there is blatant evidence of dishonesty no one it seems is willing to investigate further. I would dearly love to name and shame the company who operate in a nice prosperous part of the country but..........
additionally,if your government and banking system is corrupt,it makes people think they can get away with things too.
thats more my point
feel free to be confrontational on this free discussion board.
my point is that any society needs to punish all fairly to function properly.
these two are guilt as hell,but so are the bankers..non of which have been prosecuted,banned or punished in anyway.
whats more our kids are being punished instead.
by
"My naivity sums up what is wrong with the UK today?"
Really?
I'm not trying to be either rude or confrontational here David but did you actually read what I wrote? I didn't condone the actions of the bankers in any way. As it happens I too think its outrageous that they played a major part in creating a global financial crisis whilst trousering millions for themselves.
The point I'm making is that the behaviour of the bankers has absolutely diddly-squat to do with this particular story.
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Whether bankers recklessly gambled and lost astronomical amounts of money is nothing whatsoever to do with the actions of this pair of crooks
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yeah right....of course no sweeteners or backhanders were paid then
and using taxpayers money to pay bonuses when you make no profit is fine too
your naivity sums up whats wrong in the uk today
David and John J - What the flippin' 'eck do the actions of bankers have to do with this?
They nicked the Client money, behaviour which strikes at the heart of the integrity of our profession. By propping up their business with money stolen from their clients they also gained an unfair advantage over their competitors who traded honestly.
Whether bankers recklessly gambled and lost astronomical amounts of money is nothing whatsoever to do with the actions of this pair of crooks
Spot on David - double standards or what!!
Jonnie, were sorry......what band did that one???
There's no deterrent in this sentencing
The average deposit account is worth about £200,000 or £500k if the LETMC advert is correct (those figures seem incorrect, average rent £1700?)
£200,000 / 150 = £1333.3 /hour for drinking tea and larking about with spotty young men.
what they did was very wrong,but what about what our banks did?.....lent ridiculous amounts of dubious money around the world(including hbos $11.5 BILLION to las vegas casinos written off)) then expected us to bail them out so they could keep paying themselves their bonuses.
what did they get?..a payoff and golden pension to pay for the gated community house in marbella.
level playing field please.
Won't be the last.
There's no deterrent in this sentencing.
One has to wonder what sort of corruption in the justice system takes a crown courst case (minimum 12 months jail sentance) and dishes up 4 weeks community service.
A very clear message is sent to the industry. Nick the client's account you will get a smaller sentance than a stealing a £20 dustbin in the summer riots.
anon: "They effectively have a life and after life sentance...
Both will lie in their graves for all eternity as crooks."
Excuse me?? Do you believe for one minute that what you have said bothers these individuals in the slightest?
The only thing that they will be sorry about is that it didn't last longer and generate more proceeds.
Those that are REALLY affected by this disgusting act of theft have received no justice here.
Shocking. The Law is an ass.
I don't think they have got away with anything David. They effectively have a life and after life sentance. Any business they ever do, present and in the future, any pound they ever earn or spend will be tainted with the fact they are convicted criminals. Both will lie in their graves for all eternity as crooks.
looks like they got away with it then
Presumably Judge Richard Rundell insists (in the strongest possible terms) that murderers sit on the naughty step for 5 minutes and rapists go to bed without any tea.