Four companies operating from Cheltenham and selling plots of agricultural land have been closed down by the High court following an investigation by the Companies Investigation Branch of the Insolvency Service.

The companies began trading in early 2004 by purchasing land in greenbelt areas across England, which were then sub-divided into plots of typically 400 - 500 square metres. In excess of 700 plots were sold in this way to the public. Potential investors in South East Asia were also targeted through Land International (Far East) Limited. The common directors for the four companies were Michael John Morris and Stephen Nicholas Meissner.

-- Advertisement --

The investigation found that during the sales process, prospective investors were told by the companies sales agents that the selling company in question would be seeking to obtain planning permission on their behalf, with the accompanying sales literature disclosing that separate management companies would be set up to deal with planning permission on behalf of plot owners at each site.

In reality, there was no prospect of planning permission being obtained.

All four companies failed to maintain adequate accounting records. Land International Limited had failed to file any accounts since incorporation in 2003, missing statutory deadlines for filing accounts for its first three accounting periods.

This failure to maintain adequate accounting records assisted in attempts to mask the extent of the companies' trading activities including to properly account for their corporation tax liabilities.

Applying the average plot selling price to the plots sold suggested that the total revenue would have been in excess of £10 million.

(JM)