The Financial Services Authority (FSA) has asked the High Court to wind up the UK’s largest 'landbanking' company, UKLI Limited (UKLI), for operating as an illegal ‘collective investment scheme’ (CIS) and denying its investors protection for their money.

UKLI advertised and sold plots of land to people by claiming that it could get planning permission for the land, which would increase in value and make investors a large profit once it was sold to a developer.  As a result, about 4,500 investors paid UKLI £69 million to buy the land.  None of the land sold was ever granted planning permission.

(Via FSA press release. To read the full story, click here)

An illegal landbanking scheme which sold plots of land to investors with the promise of big profits has had its assets frozen following action by the City watchdog.

UKLI Ltd bought up large chunks of land and divided them into small plots, which it sold on to investors.

Around 4,500 investors paid the firm £69m for 5,000 plots, which it claimed it could get planning permission for. These could then be sold on to a developer at a profit.

But none of the land was ever granted planning permission, leaving the investors with plots that were virtually worthless.

(Via The Guardian. To read the full story, click here)

An FSA spokeswoman confirmed that operating an illegal investment scheme would be covered under criminal offences in the UK but declined to comment on whether any criminal investigations or charges had been made in relation to UKLI.

(Via The Times Online. To read the full story, click here)

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Related PropertySCAM articles:

Greg Mulholland writes to UKLI
Land banking and collective investment
Land banking and collective investment (continued)
Petition to wind up UKLI Limited
UKLI Limited (in Administration)
Did you pay for your plot by credit card?

Other links:

FSA seeks to close landbanking company at FT Adviser
High Court to close £69 million landbanking scheme at citywire
Illegal 'landbank' scheme closed at BBC news
FSA puts UK landbanking firm into administration at MoneyMarketing
FSA closes down illegal investment scheme at Reuters
U.K. Financial Regulator Asks Court to Shut Down UKLI at Bloomberg.com
FSA seeks to close down 'landbanking' scheme at Money extra
£69m landbank scheme closed at aboutproperty.co.uk
FSA calls for closure of 'landbanking' firm at London Stock Exchange
‘Good news’ for village as land sale firm goes bankrupt at getwokingham.co.uk

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