Morris Property Scam

[Mindy]

I guess every Property investor should learn a lesson from the Morris Property scam if its sounds too good to be true...it probably is, as I keep saying do your own research. To read the original blog on the subject and everyones comments click here for Property Investment scams

[Offplanpropertyexchange]

SRM Holdings, the Leeds based property group owned by Simon Morris, has gone into administration.

SRM holdings was set up in the summer after Morris voluntarily dissolved Morris Properties and its parent company SR Morris. The company has debts of more than £50m to a number of high street banks.

His company owned more than 500 properties, mostly apartments in Leeds, and for the year ending 31 July 2006 made a profit of over £15 million.
Morris was also featured in a Panorama documentary which alleged that his firm sold student flats to buy to let investors at inflated prices, which led to a Serious Fraud Office investigation.

[Offplanpropertyexchange]

More details are coming out about SRM Holdings that went into administration yesterday, apparently there are another 37 companies involved.
Other subsidiaries now also in administration include Another Move Ltd, Born Asset Solutions Ltd, Budget Money Limited, Cunliffe Road Developments Ltd and Universal Homes Limited

[Offplanpropertyexchange]

A spokesman for the administrators of Mr Morris's collapsed property company today confirmed that the 31-year-old director was one of ten people made redundant on Friday.Mr Morris, 31, on Friday that his services were no longer required.

He has been made redundant along with ten of the 21 staff that still worked for the Leeds-based company.

SRM Holdings and 36 subsidiary companies were placed under the control of the Leeds offices of insolvency firm Begbies Traynor a week ago.

Administrators from KPMG have also been appointed to handle part of the collapsed property empire.SRM Holdings Ltd, which sold both commercial and residential properties is understood to have debts of around £50m and the main creditors are thought to be the major UK high street banks.

SRM had a portfolio of more than 500 properties, mostly flats in the city.

Dozens of people who bought buy-to-let properties from another of his businesses, Morris Properties Ltd, claimed they paid too much for houses and flats across the city. Mr Morris said then that factors including the credit crunch and interest rate rises were to blame.