Crisis company defends role of businessman Peter McInnes after fraud investigation fails

A crisis management company has defended the role of well-known businessman Peter McInnes following a failed fraud investigation.

Earlier this month, the Serious Fraud Office (SFO) announced that its lengthy investigation into suspicions of fraud in New Chinatown, Pall Mall and Manchester’s Angelgate had been halted due to “insufficient evidence.”

ECHO reported on how international investors have invested large sums of money in New Chinatown and Pall Mall.

READ MORE : Elliot Group investigation reveals investor money was used to grant unsecured loans

The largest amount owed to buyers is at North Point Pall Mall, where buyers owe £ 18million. New Chinatown shoppers owe £ 4.5million.

Liverpool businessman Peter McInnes spoke to the media on behalf of New Chinatown and Pall Mall in 2015 when he was allegedly chairman of real estate company North Point Global (NPG).

The New Chinatown and Pall Mall programs were based on the off-plan or split-sales model, in which buyers make large deposits which are then used by developers to complete the program.

Now, Samuel Beilin and Liverpool-based Partners Crisis and Risk Group have released a statement defending their client, Mr McInnes.

It reads: “The success of the split-plan model or even any real estate development depends on public confidence in the developer. Without it, the developer quickly loses the support of funders, vendors, consultants and employees and their developments will fail.

“North Point Global and Peter McInnes were both subjected to one-sided, disproportionate and unbalanced media reporting and their demise therefore became the ultimate self-fulfilling prophecy.

“Every person or business subjected to such media bias will suffer the same result and a free and unfettered press should present fair and balanced reports that clearly give both sides of the argument in equal measure, especially when an investigation criminal proceedings are in progress. “

The development of Pall Mall (Liverpool ECHO)

The statement was particularly critical of ECHO, which reported in 2016 that Mr McInnes was named during a proceeds of crime hearing involving convicted drug gang brothers Stephen and Peter Clarke. Mr. McInnes has always denied any wrongdoing.

In its statement, the crisis management firm said that although it acted on behalf of North Point Global and Peter McInnes, they were not directly involved in fractional ownership projects.

The company said that while the collapse of North Point Global’s real estate programs may have warranted an investigation, it was wrong that their company had been suspected of wrongdoing.

The statement reads: “Due to the failure of the developers to deliver the aforementioned three projects, the buyers suffered significant financial losses. While this may warrant an investigation into the circumstances surrounding these losses, there is no had absolutely no reason for Samuel Beilin and Partners Crisis and Risk Group to be suspected of criminal offenses or for the search of their homes and business premises or for the arrest of their agents. “

The statement reveals that the company has been the subject of an investigation in the past.

It reads: “This is the seventh time that prosecuting authorities have taken similar coercive action against Samuel Beilin and Partners Crisis and Risk Group and the seventh time that no further action has been taken due to lack of evidence or evidence.

“The group has the right to represent clients suspected of wrongdoing in conjunction with their legal team. In doing so, they do not condone or support the actions of clients subsequently convicted of criminal offenses and they certainly do not facilitate such criminality. . “

The statement also addresses the controversies surrounding the fractional selling model.

It reads: “All three projects were sold on the basis of a split-plan model whereby buyers exchange contracts, before construction begins, and pay a higher exchange deposit than usually between fifty and seventy-five percent of the purchase price.

“In return for a financial return on their deposit over the life of the construction, buyers agree to have their deposits used by developers for both construction work and other project costs. very basis of the contract between the parties on which both parties have legal representation.

“It is for politicians and lawmakers to decide whether the split-plan model is illegal and should be banned. In the meantime, it is completely legal and provides otherwise impossible development funding for many projects in Manchester and Liverpool. . “

Earlier this month, the SFO released a statement that read: “” In the UK, law enforcement agencies prosecute cases when they pass the Crown Prosecutors Code test. It specifies that prosecutions must be in the public interest and offer a realistic prospect of conviction.

“After a three-year investigation and a review of the available evidence, there was not enough evidence to support a prosecution.

“The SFO, in consultation with the North West Regional Organized Crime Unit (NWROCU), carefully considered the potential impact on investors when making the necessary decision to close the investigation. We encourage those who believe they have lost ground. the money in these investments to visit this page e for support and advice.

“We will continue to assist other partner agencies with ongoing investigations.”

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