Investors sue over buy-to-let losses
A number of people in the region are among 130 in a group legal action which is being prepared against a Leeds-based business, Morris Properties and several conveyancing solicitors.
The firm specialised in student new build flats and refurbished homes in Leeds and the north east. It sold more than 1,000 properties before going bust last summer.
According to The Sunday Times, detectives from the Serious Fraud Office (SFO) are investigating alleged scams involving properties in cities across the north of England, including Hull.
The report suggests the deals could have cost investors and banks millions of pounds.
Investors claim the properties were overpriced when they bought them and that pledges of rental income did not materialise.
Max Gold, a Hull-based solicitor whose firm is acting on behalf of clients across the country, said: "They claim that they bought investment properties which included covering solicitors fees and mortgage arrangement for them from various companies forming parts of the Morris group.
"These properties are said to have all been well overvalued when they were being bought for investment and the potential incomes were not being achieved."
A Hull builder, Richard Lee, is reported to be the single biggest investor in the Morris scheme and says he is now £6m in debt.
A spokesman for the SFO said they were looking into a case but could not confirm exact details.
Simon Morris, the man who ran Morris Properties, reportedly denies any wrongdoing and is said to be planning legal action against the police. He says people simply invested at the wrong time and with poor judgement.
West Yorkshire Police have confirmed they are investigating and arrests have been made.
Are you one of those taking legal action? If so, call the Mail on (01482) 315270.
Solicitor Max Gold, whose firm is acting on behalf of clients against a buy-to-let property company, says arrests have been made in connection with the case
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