Two directors of companies have been handed a disqualification totaling 26 years after they were found to be selling land as an investment, yet had no value.

Mehmet Hunsu and Ali Seytanpir’s scamming business activity were discovered after an investigation by the Insolvency Service and HM Revenue and Customs took place. Both companies, known as OFG Investments Ltd (OFG) and GIG Properties Ltd (GIG), had been found to market and sell investment land that belonged to another company. The land was on a former WWII airfield in the Devon area on an investment commission.

However, the investors that fell into the scam were told that the land had opportunity for development and appropriate planning permission but in reality, it didn’t. The local authority would not allow the permission for housing and/or commercial development that gave a good return for investors, despite the scam company’s literature telling otherwise. Brochures, salespeople acting on behalf of the company and the website suggested that the land would give a good return on their investment due to this.

The investigation revealed that the companies made sales to investors that totalled £2,209,296. Neither companies owned the land, and by agreement with the owner, they made commission in excess of 85%.

Anthony Hannon, the Official Receiver in the Public Unit Interest, commented:

“While land can be a viable investment, it should have been clear to the directors from the local authority’s published plan that there was no likelihood of planning permission being granted at the location, and so there was no viable exit strategy for the so called investments.”

Mr Husnu has been handed a disqualification of 14 years commencing in January, whilst Mr Seytanpir was handed a 12 year ban that commenced on 12 January.

Due to the disqualification, neither scammer is able to act as director of a company, be the receiver of a company’s property or take part in the formation, management or formation of a company or limited liability partnership.