Charity conman and the police fraud probe into £30million flats that don’t exist OVER PROPERTY FIRM’S LUXURY COMPLEX
Investors’ fears two years after launch
Charity firm fraudster Tony Freeman has been linked to a £ 30million property development which is at the centre of a major police investigation.
Investors from across the world sank savings into the proposed luxury project from Pinnacle Alliance, called Angelgate in the centre of Manchester.
The firm, who Freeman worked for as a consultant, planned to build 344 apartments and investors paid up to £ 350,000 to secure their plot in the proposed scheme.
But not a single brick has been laid on the site since it was launched two years ago – even though the development was planned for complet ion two months ago.
In 2006, Freeman was jai led for 18 months at the High Court in Glasgow for defrauding his own fundraising f irm of £ 450,000 days before it went bust.
A probe by Greater Manchester Pol ice was launched last month into Angelgate after complaints from around 70 investors to Action Fraud – the national fraud and cyber crime reporting centre.
Investigators were also alerted by former sales director Julie Harvey, 57, who was responsible for Angelgate sales in Hong Kong and Singapore – a role she has claimed Freeman hired her to perform in 2014.
Each of the planned 344 flats have been sold, with most of the buyers based in the Far East.
Freeman, 50, is a former professional fundraiser whose Paisley- based company Solutions RMC raked in millions from breast cancer charities by charging huge commissions.
His firm raised £13million for two charities over seven years – but only £1.5million went to the groups. He also paid himself £ 170,000 a year and collected £ 8million in commissions.
After his release from prison in 2007, Freeman set up in business in the Manchester area.
Harvey has claimed that of the £30million raised through sales of flats, less than £ 2.5million was left in the company accounts.
It is claimed more than £13.2 million went to commissions and fees, with £ 7.9million spent on overheads and running costs.
She has also claimed she’s owed £250,000 in unpaid commission.
Harvey said: “I discovered Tony Freeman’s chequered past years after I met him. He explained away the jail term as a tax evasion issue. “It seemed very plausible at the time. “Tony wanted me to be the face of Pinnacle going out to Asia. “He said, ‘ Julie, your job is to sell’.” Harvey said she became worried last year when no flats had been built. She quit in August.
She added: ”Investors were concerned because they couldn’t see any work on site. In early 2016, it became evident that the monies weren’t there.
“I asked Tony where the money was but no one would tell me. I found out last April there was only £ 2.5million in the account.”
Though he is not listed as a director, Harvey has claimed Freeman ran Pinnacle.
He also appeared at Far East sales events, set up to to promote Angelgate and other projects. ojects.
Har vey has notified Companies House, the Bankank of China and police in Hong Kong about Freeman’s links to Pinnacle Alliance and Angelgate.
She added: “Some investors blame me. They think I’ve run off with the money.”
One investor fears he has lost £75,000.
Computer programmer Mehdi Sadeghian, 60, from Windsor, Berkshire, agreed to buy a flat for £147,000 two years ago and paid a cash deposite to Pinnacle.
He was told he would be paid four percent interest on the deposit while waiting for the flat to be completed.
Medi said his flat was due to be completed in February last year.
He is now part of a campaign group
In early 2016, it became evident the monies weren’t there
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hoping to get investors’ money back. He said: “ThThis is our life savings.
“I was dudue to have my £75,000 deposit returned in February if the work wasn’t completedcompleted.
“But theythe say they don’t have the money.”
Pol ice conf i rmed they were investigatinvestigating. A spokeswoman said: “Greater Manchester Police have received around 70 complaints surrounding a property investment in Manchester city centre.
“These complaints have been recorded as fraudulent offences and are currently being reviewed and assessed by specialist officers.”
Yesterday Pinnacle said the delays at Angelgate were due to the construction company going into administration.
A spokeswoman added: “Pinnacle has now reached an agreement with a reputable building constructor who has said they’re willing to take on the bui ld at no extra cost to buyers. Buyers will get the flats they
“Pinnacle will have all the funds required.”
She added: “Pinnacle has received no contact from police or Action Fraud UK, however the company would be happy to cooperate.”
Pinnacle claim Julie received a six-figure loan from them and has not paid it back.
The firm also described Freeman as a consultant to their board of directors.
Their spokeswoman added: “He doesn’t own Pinnacle and is not a director of Pinnacle.”