A property company which obtained payment from would-be property buyers on the basis of false representations has been wound up in the public interest.
Modo Homes, which operated from Merseyside, has been wound up following an investigation by the Companies Investigation Unit of the Insolvency Service.
Modo Homes operated an investment business by claiming it was authorised to offer properties for sale on behalf of lenders disposing of distressed properties.
It required investors to pay a non-refundable reservation fee for a particular property before they could see it, and until they had had handed over the money, would not release the address of the property.
The investigation found the company misled investors because it failed to inform investors that the fee was non-refundable until after it had been paid. It also collected multiple reservation fees for the same property and marketed properties without the permission of the owners.
The company, which is estimated to have received over £450,000 from customers, also failed to keep accounting records. It provided no evidence that any of its investors had been able to progress property deals to completion.
Investigation supervisor Colin Cronin said: “Modo Homes Group raised money from investors on false representations and then made it very difficult for investors to contact the company to progress the property purchase.
“These proceedings show that the Insolvency Service will take firm action against companies and directors which operate in this way.”
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