First UK criminal charges for 'land banking' fraud

Omar Eshpari, 30, from Enfield, North London, Dean Straker, 32, from St Albans, Hertfordshire, Stefan Mitchell, 41, from Coulsdon, Surrey, and Derial White, 26, from London, were all charged with conspiracy to defraud before being released on bail.

The men are all due to appear at City Magistrates on June 23.

The charges follow enquiries conducted into Pemberton International Ltd, Eldon International Ltd, Willow International Ltd and Allied Investment Management Ltd.

It is believed the activities of these companies, surrounding investments in land, resulted in losses of millions of pounds to UK investors, with the land being apparently misrepresented in both its potential use and its ownership when sold.

'land banking' fraud is an emerging phenomenon where genuine investors are duped into purchasing plots of worthless land.

It was recently estimated to be worth at least £200 million, and City of London Police is currently conducting a number of criminal investigations across the country.

Commissioner of the City of London Police, Adrian Leppard, said:

“Land is a tangible asset and is increasingly viewed as a safer place to invest than stocks and shares.

“Unfortunately organised crime gangs appear to be wise to this and are now targeting people across the UK, especially the elderly and vulnerable, with cold calls offering bogus investments.

“These criminal charges are an important landmark and emphasise how tackling 'land banking' fraud is now a major priority for the City of London Police.”

Luke Dockwray, reviewing lawyer in the CPS Central Fraud Group, said:

“This is the first time the Crown Prosecution Service has brought a prosecution for a ‘land banking’ fraud. The evidence we have suggests that these defendants sold land to investors by falsely representing that the land was suitable for future development and offered real investment opportunity.

“I considered over 16,000 pages of evidence gathered by the City of London Police during their investigation. Having reviewed that material, I have concluded that there is sufficient evidence for a realistic prospect of conviction, and that it is in the public interest to charge Omar Eshpari, Stefan Mitchell, Dean Straker and Derial White with conspiracy to defraud their investors.”

DC David Parkinson of the City of London Police would like to hear from anyone who has invested in these companies and can be contacted on either 0207 601 6984 or landfraudenquiry@cityoflondon.pnn.police.uk