An unscrupulous land banking firm which sold greenbelt land in Telford it didn’t actually own has been ordered into liquidation in the High Court.
Queensgate Consultants, based in London, led investors to believe plots at Wrockwardine Wood in the town had serious development potential – but an investigation by The Insolvency Service found this claim was not supported by any credible evidence.
Another firm UK Investment Consultancy was also wound up, and between them the two firms raised around £1 million from the public.
The Insolvency Service said both companies are linked to land banking companies previously wound up on grounds of public interest.
Company investigations supervisor Chris Mayhew warned that people should be aware of scams that seem “too good to be true”.
“Companies that employ such tactics should know that The Insolvency Service can and will investigate and, where appropriate, take action to put them out of business.
“Potential investors should be mindful of the old adage – if it sounds too good to be true, it usually is”.
The Insolvency Service advised people interested in investing in land to proceed with caution.
It said to ignore a professional looking brochure and website, and instead search for the company name and “land banking” online to learn more.
People without access to the internet should speak to their local planning office about the land in question and its likely prospects of receiving planning permission.
The petition to wind up the company in the public interest was initially presented in the High Court last November.
The company did not oppose the petition and was ordered into liquidation earlier this year.