Amarjit Singh-Mann, Kamlesh Panchel and Jagjeet Chahal appeared before Harrow Crown Court for sentencing in relation to a conspiracy to defraud of which they had been found guilty in early October 2012. The scheme involved them falsely claiming that they had secured long-term lease agreements on existing properties as a result of which they defrauded mortgage lenders of approximately £20 million. The three men had a property portfolio which they attempted to fund the expansion of by refinancing several existing commercial properties, falsely telling lending institutions that they had obtained long term leases on the properties with a number of different companies. Three mortgage lenders granted large loans on the belief that the men had the leases as claimed which they believed would in turn provide a 'guaranteed' steady income.
Mr Singh-Mann and Mr Panchel were arrested in September 2009 after one lender discovered the fraud and reported to police. Mr Chahal was arrested in June 2010 and all three were then charged with conspiracy to defraud.
A police spokesperson said that the men "thought their mortgage fraud was so complex they could beat the lenders and the police but our investigation, along with the cooperation of the lenders, has proven their arrogance was their downfall".
Mr Singh-Mann and Mr Panchel were both sentenced to a term of 7 years in prison and Mr Chahal has to serve a sentence of 3½ years in prison. All three men have also been disqualified from directorship of a company for a period of 8 years.
The above is not legal advice, it is intended to provide information of general interest in current legal issues.