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Land banking company forced into liquidation

Date Added: 15/04/2013  

Trinity Associates has been forced to go into liquidation following an investigation into the firm carried out by the Insolvency Service.

The land banking company - which was based in Bridgwater, Somerset - was found by the body to have been involved in the sale of plots of land to the public for investment at a site in Bridgewater, as well as a site in West Cheshunt in Hertfordshire.

Following the investigation from the Insolvency Service, it was discovered that Trinity had a close association with a number of other companies, such as Century Property Group, engaged in selling land at these two sites at exaggerated prices.

Company investigations supervisor at the Insolvency Service Chris Mayhew stated Trinity had been used as a vehicle to "circumvent the appointment of a provisional liquidator in Century in order to continue Century’s unscrupulous land banking business by re-routing Century's sales and by also allowing its bank account to be used to transact the business of other land banking companies".

He explained nearly 100 unscrupulous land banking companies have now been wound up by the Insolvency Service following investigations and highlighted the fact that not one the firms made any money for investors.

Members of the public were warned by the Insolvency Service not to fall prey to these "sharks" by making snap decisions based on a slick sales pitch made on a cold call or after seeing them on a website, as these are "designed to make those behind unscrupulous companies rich, not investors".

"These cold calling savings raiders can devastate lives and I would urge people to be cautious when contacted out of the blue," said Mr Mayhew.

The number of insolvencies in the manufacturing and construction industries dropped significantly in the first quarter of 2013, the release of official data recently showed, despite the fact more high street retailers are entering administration.

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Posted by Michael Beam

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