A man and his accomplices have been sentenced for their involvement in an illegal sale-and-rent-back scheme.
Rajinder Gill has been sentenced to two and a half years in prison for running a sale-and-rent-back scheme without being authorised and illegally providing credit agreements and mortgages.
As accomplices in the scheme, Amandeep Heer received a community order for two years with a condition of 250 hours of unpaid work, and Jetinder Sandhu has completed 100 hours' unpaid work over 12 months (as a condition of a 15-month suspended imprisonment, which was suspended for 18 months).
Through Secure Property Consultants, Gill targeted homeowners in financial difficulty, claiming he could sell their homes quickly, offering them cash advances and saying they could stay in homes as tenants. Victims were encouraged to sell their houses at less than market value, while he charged excessive, confusing or hidden fees – totalling £925,233. Some were evicted from their homes.
Once Gill became aware of the FCA’s investigation he tried to conceal these activities and shut down the company, telling clients not to talk to the regulator.
Gill pleaded guilty to 27 offences in relation to sale-and-rent-back agreements as well as credit agreements/mortgage contracts. He asked the court to consider a further 12 offences of the same nature at sentencing. He was also disqualified from being a director of a company for eight years.
The FCA has commenced confiscation proceedings with a view to compensating victims.
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, Judge Weekes said 'there was a pattern of systematic exploitation’ and the 'victim impact [was] stark and troubling'. He added Gill was 'dishonest and manipulative' and the sale-and-rent-back agreements 'particularly odious'.
