Harry Watkinson, a spokesman for the City of London Police, says: "We've also seen a significant increase in the amount of land banking fraud recently."

This is where property investment companies persuade investors to buy small plots of land in the hope that planning permission will be granted by the local authority, thereby increasing the land's value. Often the land being sold could never be developed because it is an area of special scientific interest, inaccessible, or simply non-existent. Last year the Financial Services Authority closed down five land banking firms who had lost investors £42m. The FSA is also investigating a further 20 firms and estimates that total losses through land banking fraud top £200m.

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


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