An investigation under the Proceeds of Crime Act has begun into the business dealings of a 26 year old landlord who built up a property empire using fraudulently obtained buy to let mortgages.
James Barnes of Towyn Way West in Towyn, Rhyl, was recently jailed for nine months after pleading guilty to obtaining and attempting to obtain mortgages by deception. There was also a separate charge of investing the criminal proceeds of one property in another.
The court heard that although the way he obtained mortgages was illegal Barnes had in fact run the buy to let properties in a professional way.
His business was successful and all bank repayments were being made.
He purchased properties in Rhyl, Kinmel Bay and Holywell with ‘buy to let mortgages but the building society failed to make checks on the information Barnes provided.
Barnes, who was listed as the general manager of a company named Questlodge Ltd, had given his annual income as £30,000.
But, said Simon Mills prosecuting counsel, between 2003 and 2006 when he obtained the mortgages by fraud, he didn’t earn more than £12,200.
Despite this he still managed to raise £221,632 by deception from Halifax, and made attempts to obtain a further £151,000.
