A property director has been disqualified for 14 years after his company repeatedly overvalued land by up to 23 times what it had cost to buy.
Carlos Alesandro Paul Amaya-Torres, director of Towers Property Development, was disqualified after an investigation by the Insolvency Service uncovered sales agents had made misleading statements on the phone and in written marketing materials.
The investigation found customers were led to believe that the parcels of land sold by Towers would soon obtain planning permission, when in reality there was little prospect of this.
Towers also failed to inform customers of vital information, such as the risks of making an investment, the planning history in relation to the land, and the planning restrictions that applied at the time of the sale.
In 2011, the Brighton-based company was subject to enforcement action by Trading Standards and the company eventually agreed to include prominent warnings in its marketing materials.
However, buyers who had purchased land prior to December 2011 told the Insolvency Service that they would not have done so if Towers had provided them with all the relevant information.
The liquidator of Towers has received claims totalling more than £2m from customers who purchased land.
Amaya-Torres was the sole director of the company from 29 January 2007 until it ceased trading, going into liquidation on 5 December 2013 with an estimated deficiency of £2.1m.
His period of disqualification is due to commence on 1 February 2016.
Anthea Simpson, head of company investigations at the Insolvency Service, said: “Directors of companies that mislead customers into making risky ‘investments’ can expect their actions to be vigorously investigated by the Insolvency Service once the company enters liquidation.
“The length of the disqualification sends a clear message to others of how seriously such misconduct is considered by the secretary of state and that it will be firmly dealt with.”
• To send feedback e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
