INVESTORS across England fear they have been left tens of thousands of pounds out of pocket following the closure of a York
property investment company.
People from as far away as Leicester and London have told The Press that they paid sums of between £6,000 and £58,000 to
Challenor Property Development, and are now worried they might never get their money back.
The company, based at Regency House, just off the city's outer ring road at Poppleton, closed down last month,.
Challenor wrote to one
property investor last month, telling her that legal ownership of the company had been "transferred and assigned" to a Carl Gilfoyle, along with all the "rights, interest and benefit".
The letter said it would take six to eight weeks for newly appointed accountants to assess the current financial position. "Once this work has been performed, any potential liability can then be agreed by the new owners," it said.
The ownership transfer - while mooted- had never gone ahead.
City of York Council said today that its trading standards department had received a number of calls in recent weeks from people about Challenor.
"We are trying to locate the proprietors of the business to discuss these matters with them," said a spokeswoman, adding that anyone wishing to contact it about Challenor should phone Consumer Direct on 08454 040506.
North Yorkshire Police said it was "aware of the difficulties with this company".
A spokesman said: "If anyone feels that they have had any problems with this company they can contact us via email at
challenorpropdevelopments@northyorkshire.pnn.polic e.uk or by letter to Fulford Road police station.
"They should give their name and full contact details along with a brief resume of the events."
Investors told The Press today how they had paid money to Challenor after attending two-day seminars held at a York hotel.
They said the company aimed to help them through the whole process of buying property as an investment, from finding suitable properties to sorting out legal matters and mortgages.
One investor, Rosalind Matthews, from Leicester, told The Press she paid the company a deposit of £6,816 for an apartment last July.
She claimed she was subsequently told she could not buy the property, after which she had repeatedly demanded a refund. But despite repeated promises, nothing had been paid to her and she had recently been unable to get through to anyone at Challenor.
Another
investor, David Howe, from London, said he had paid out a total of just over £10,000 to Challenor, including deposits on properties and "membership" fees, and had nothing to show for it as yet.
"Quite frankly, I am so disappointed with them," he said. "This is making me feel sick."
Another investor, who did not wish to be named, said he had spent £50,000 plus VAT on acquiring a
franchise from Challenor to operate on its behalf in a region of the country, and now feared he might not get any of the money back.
"We were sold a dream and it is turning into a nightmare," he said.
Insight into the way company operated
A NOTICE inside the offices of Challenor explains something of how the company operated, and how it encouraged people to invest money with it.
It states: "Question. Would you buy property if someone paid the deposit. Your legal fees were paid.
"The stamp duty was paid. Someone found the property for you. Someone organised the mortgage.
"Someone instructed the solicitor. Someone dealt with the developer. If the answer to these questions is yes, then you need to join us at
Challenor."
Other notices visible through the doors advertised properties as far away as County Durham, Northamptomshire and Buckinghamshire.
Challenor Property Development under investigation
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