A father and son who ran a lettings agency which closed down suddenly after they pocketed thousands of pounds of client money, have pleaded guilty to theft and fraud.
David Carr, 58, and Peter Carr, 27, took more than £15,000 by keeping cash paid in to Town and Country Estates in Sunderland.
When customers began to realise they might lose their money, the pair shut up shop in the summer of 2009 and disappeared for more than a year, Newcastle Crown Court heard.
It was only after some of their victims tracked them down that the police arrested them.
The Carrs admitted theft and fraud charges between October 2008 and June 2009.
Many landlords and tenants lost out because of their dishonesty, said Michael Graham, prosecuting.
Landlords were told tenants were behind with rents when they queried why nothing was being paid, when in fact the tenants were usually up to date with all their payments, and the Carrs had been keeping the cash for themselves.
Judge James Goss told the Carrs: “I accept this was a business that became dishonest, having been an honest business.
“It became dishonest when the economic downturn caused increasing difficulties for businesses of this kind.
“There is no excuse for what took place. You have admitted your crimes. Your actions have caused anxiety and some hardship for your victims. They remain your victims, uncompensated.”
The judge sentenced Carr senior to 30 weeks’ imprisonment, suspended for two years, with 200 hours’ unpaid work, and ordered him to pay £5,826 in compensation to the victims at a rate of £300 per month.
The judge deferred sentence for three months in the case of Peter Carr to allow him time to attempt to find employment so he can also pay compensation.
Judge Goss said that as well as punishing the Carrs, he had a duty “to ensure victims receive at least some compensation for having their money stolen from them or being defrauded of their monies”.
Defence barristers said the pair did not set out to defraud and are determined to repay their victims.
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Comments
Fair point Scott.
My business is still relatively small with loans secured on my home (even though its a limited company - the bank would only lend with that security). This does rather focus the mind when I'm making business decisions. Bigger companies, as you rightly say, can often walk away from huge debts in the manner you describe.
The expression "least-worst solution" is often given to justify such activities, which is rather like saying that paying a ransom to a kidnapper is the least worst solution. In both cases other people lose out, and nothing is done to deter others from doing the same.
And yet an agent can liquidate a company owing money to suppliers and HMRC and the new company buys the assets of the old one for a fraction of their value and carries on trading as if nothing had happened. Not even a slap on the wrist.....
At least the Belvoir franchisee in Norwich got 22 months when he stole £145,000 of his clients money and at least he had the good grace to admit he did it because he was a useless businessman.
But he's since used the cockeyed bankruptcy laws in this country so when he comes out of clink the slate will have been washed clean.
In the meantime, Belvoir head office have just put their head in the sand and have refused any assistance whatsoever despite the fact their man under their supervision had been stealing for 5 years, almost as long as he had owned his Belvoir franchise.
I don't usually agree with Industry Observer but he's spot on this time.
So another pair of thieves just get a slap on the wrist.
Wish I had a tenner for every thief who said he hadn't meant to take the money, it was temporary desperation and intended to repay all their victims in full