The Financial Conduct Authority (FCA) has launched criminal proceedings against three individuals over allegations of operating unauthorised sale-and-rent-back schemes.
Rajinder Gill, Jetinder Sandhu, and Amandeep Heer face charges of conducting regulated activity without requisite authorisation. This marks the regulator’s intensified focus on rooting out and penalising illegal financial activities.
According to the FCA, between September 2014 and November 2018, Gill and Sandhu provided loans and orchestrated sale-and-rent-back agreements on behalf of Secure Property Consultants Ltd (operating under the trade names Secure Property Buyers and Secure Property Sales) without the necessary regulatory approval. Both individuals have also been accused of fraudulent trading.
In a similar vein, between February and October 2017, Heer is alleged to have offered two sale-and-rent-back agreements without authorisation.
Sale-and-rent-back schemes target homeowners in financial distress. These arrangements involve selling their property at a discounted rate with the understanding that they can continue to reside there as tenants for a predetermined period.
However, these homeowners may face increasing rent payments and potential eviction if they fail to keep up with these payments.
In certain cases, firms involved may misrepresent the terms of the sale and tenancy, leaving consumers unaware of the associated risks.
The FCA urges any consumer who believes they may have been impacted by these unauthorised activities to contact the investigation team at alva.info@fca.org.uk.
Gill appeared in Westminster Magistrates’ Court on 17 May 2023, where he refrained from indicating a plea. Sandhu and Heer made their appearances in the same court on 12 June. Sandhu pleaded not guilty, while Heer did not indicate a plea. The case has been formally transferred to Southwark Crown Court for further proceedings.
