Flats firm ‘rogues’ banned
SIX ‘ rogue directors’ from a collapsed firm behind a controversial Runcorn flats project have been banned for a total of 54 years.
The Insolvency Service’s investigation focused on Absolute Living Developments Ltd – the company that forced through permission to convert East Lane House in Runcorn into 448 one-bed flats and studios on appeal after the project was turned down by councillors.
The probe looked at four of ALD’s developments in Bradford and Greater Manchester, but not the Runcorn project
Most of the bans were for terms of nine years.
Four of the directors are based in Malaysia, including Kien Cheong Yew who has been disqualified for 12 years, while the remaining two live in Wirral and Kilburn, North West London.
Absolute Living Developments sold off-plans flats in England to investors largely based in Asia.
The Insolvency Service said it is estimated the firm secured at least £12m to invest in residential property schemes in various states of development.
Daniel Mark Harrison, 38, of Kilburn, North West London, was the last of the directors to be disqualified and he was banned for six years through a court order on November 28.
During Harrison’s hearings, the court heard Absolute Living Developments Limited was incorporated in November 2013 with registered offices in Liverpool.
The company sought investments to convert buildings into residential properties. But investors complained that after having pumped their cash into the schemes, the developments had not been fully completed and the flats were unliveable.
Absolute Living Developments was ● wound up by order of the courts in April 2016 on petition from Bradford Council due to unpaid rates and investigations that focused on three developments in Bradford and one in Manchester.
The Insolvency Service said investigators discovered misconduct by ALD facilitated by the directors.
The company provided misleading and incomplete information about the developments to investors, meaning they could not carry out due diligence.
Absolute Living Developments had no ability to ensure the terms of contracts could be met and failed to provide adequate safeguards for cash obtained from investors.
For one of the developments, ALD requested completion payments despite the conversion not being completed.
And the company signed charges – a type of financing arrangement – over Absolute Living Developments’ assets, which meant that a third party owns them and there are no remaining assets in the liquidation to pay creditors.
An independent insolvency practitioner has been appointed in this case to investigate recovery of assets for the benefit of creditors, who have so far made claims of nearly £69m.
ALD was incorporated in November 2013 and registered to an office at Horton House in Liverpool.
Since then its registered address has moved to Gladstone House in Surrey.
The saga of the collapsed East Lane House flats project and the building’s ongoing dereliction in Runcorn has been branded a ‘national disgrace’ by Runcorn and Halton Lea ward councillor Cllr Dave Thompson. The six banned ALD directors are: Adrianne Mei Kwan Nyau, 40, of Wirral, nine years, from December 14, 2017, to December 13, 2026.
Daniel Mark Harrison, 38, of Kilburn, London, six years, from November 28, 2018, to November 27, 2024 due to a court order.
Kien Cheong Yew, 40, of Kuala Lumpur, Malaysia, disqualified for 12 years; Ameerali Bin Abas, 39; Andrea Nicole Pacquiao Pieter, 30; and Chi Yeun Leong, 68; all of of Malaysia, nine years.
Ken Beasley, Insolvency Service official receiver, said: “This was a complex investigation, considering the amount of money that was invested, not all of the directors were based in the UK and we worked with several other authorities.
“We want to draw attention to these rogue directors so we can alert people about the risks involved when investing, while also warning that we will investigate and tackle those that set out to deliberately rip people off by misrepresenting the investment opportunity on offer.”