A man who ran an unauthorised sale-and-rent-back scheme targeting homeowners in financial difficulty has been jailed after admitting dozens of offences linked to illegal mortgage and credit agreements.
Rajinder Gill has been sentenced to two and a half years in prison after operating an unauthorised sale-and-rent-back scheme through Secure Property Consultants Ltd.
The scheme targeted homeowners facing financial problems, encouraging them to sell their properties below market value while being promised they could remain living in their homes as tenants.
According to the Financial Conduct Authority (FCA), victims were offered cash advances and reassured that their homes could be sold quickly. However, excessive, confusing or hidden fees were charged, with total fees reaching £925,233. Some victims were ultimately evicted from their homes.
Amandeep Heer received a community order for two years, including 250 hours of unpaid work, for her role in the scheme. Jetinder Sandhu completed 100 hours of unpaid work over 12 months as part of a 15-month suspended prison sentence, suspended for 18 months.
Steve Smart, executive director of enforcement and market oversight at the FCA, said: “Mr Gill and his accomplices preyed on vulnerable homeowners, turning financial difficulty into misery to fill their own pockets.
“Sale-and-rent-back comes with significant risks. If you are considering using it, always check the provider is authorised by the FCA.”
In sentencing Gill, His Honour Judge Weekes said: “there was a pattern of systematic exploitation’ and the ‘victim impact [was] stark and troubling’.
“Mr Gill was ‘dishonest and manipulative’ and the sale-and-rent-back agreements were ‘particularly odious’.”
The court heard that Gill attempted to conceal the scheme after becoming aware of the FCA’s investigation, shutting down the company and instructing clients not to speak to the regulator.
Gill pleaded guilty to 27 offences relating to sale-and-rent-back agreements and credit agreements or mortgage contracts. He also asked the court to consider a further 12 offences of the same nature at sentencing.
Following a trial, Heer was found guilty of committing three similar offences.
The FCA has begun confiscation proceedings to recover the proceeds of the crimes, with the aim of compensating victims.
Gill has also been disqualified from acting as a company director for eight years.
