John Potts, a company director from Sunderland, has been jailed for 5 years for carrying out an £80m property fraud to carry out his luxurious lifestyle.
He used investors’ savings to build up an art collection, purchase jewellery and designer suits and even a classic Jaguar car.
Potts, 60, from Sunderland, and fellow directors of his buy-to-let company, Practical Property Portfolio, stole from over 1,700 investors, who were promised 15 per cent annual rental returns.
The investors were asked to invest £25,000 in flats and houses in run down areas with the assurance that they would be refurbished, maintained and filled with tenants. Investors were fooled by glossy brochures, impressive show homes and slick sales pitches.
Many of the 4,000 properties bought by the company in the North of England were actually left in a run down state. Some investors involved ended up losing their life savings with one individual losing £500,000.
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