Four found guilty in one of largest fraud cases ever brought by a council

Three men have been found guilty of a £35.8m land banking fraud in one of the largest criminal cases brought by a local authority.

Daniel Webster, Stephen Allan and Steven Ronald Percival – all 29 and all from Bromley – were found guilty last week at Southwark Crown Court of conspiracy to defraud, contrary to common law, following a seven-week trial. All three had pleaded not guilty.

A fourth defendant, Christopher Demetriou, 30 of Ilford in Essex, had pleaded guilty to conspiracy to defraud offences before the trial began.

The case was a a joint operation between Tower Hamlets Council Legal Services, Tower Hamlets Trading Standards and the Metropolitan Police.

The fraud was carried out through a business based in Canary Wharf between 1 January 2005 and 31 August 2010.

The defendants had conspired together, and with other persons, to defraud investors to part with moneys for the purchase or intended purchase of plots of land which were being marketed through entities called Countrywide Land Holdings Limited, Countrywide Land Holdings, and Regional Land.

However, the plots of land were worth little or nothing to the investor. More than 40 witnesses gave evidence during the trial of being duped into buying the land.

It was estimated that, in total, more than 400 investors were deprived of £35.8m.

His Honour Judge Beddoe sentenced the defendants as follows:

• Demetriou: six years and four months in prison;
• Webster: six and a half years in prison;
• Allan: seven and a half years in prison; and
• Percival: six and a half years in prison.

All four were also made subject to a disqualification order under the Company Directors’ Disqualification Act with Demetriou disqualified for ten years, and Webster, Allan and Percival disqualified for eight years each.

In his summing up, the judge said it had been a grotesque, cynical merciless fraud.

The recently established National Trading Standards Board provided a major contribution to the legal and trading standards costs arising out of the prosecution.

The case was the largest investigation ever undertaken by the London Borough of Tower Hamlets.

Lutfur Rahman, Mayor of Tower Hamlets, said: “This case sends out a strong message that fraud will never be tolerated in Tower Hamlets. Cutting crime is one of my priorities and we will always be vigilant on criminal activities operating in the borough. The defendants in this case preyed on innocent investors with blatant disregard to the consequences for them.”

Deputy Mayor of Tower Hamlets, Cllr Ohid Ahmed, added: “The outcome of the case is satisfying and is justification of the hard work and determination of our Legal Services and Trading Standards Team working along with our partners in the Metropolitan Police and National Trading Standards Board.”

The police said it would now be using its powers under the Proceeds of Crime Act to ensure the defendants were stripped of their criminal benefit and victims were compensated as far as possible.