A former Belvoir letting agent has been sentenced to two years and nine months in prison after admitting fraud against both tenants and landlords.
Trained accountant Harpreet Garcha, who ran lettings franchises for Belvoir in Kettering, Desborough and Corby, was investigated by Northamptonshire county council’s trading standards team after a landlord made a complaint about being overcharged for routine maintenance at her rented home in Kettering.
It turned out that the cost of safety checks by a contractor was actually £166.25 but she had been provided with fake invoices for £502.50.
A court has heard how Garcha, 39, fraudulently generated significant profits at the expense of tenants and landlords, whose properties he marketed.
To disguise the practice, he set up a second (sole trader) business called Kettering Property Maintenance (KPM) which the contractors would invoice. KPM would then appear on the landlords’ monthly statement with the inflated cost.
The investigation found he had made around £200,000 by dishonestly increasing the cost of maintenance and safety work. This amounted to a mark up of about 30 per cent.
Garcha, of Kettering, admitted two counts of fraudulent trading, two counts of money laundering, five counts of insurance fraud and one offence of VAT fraud, committed between 2008 and 2012. Two further counts of mortgage fraud were left to lie on file.
He was also convicted of providing false invoices to HMRC to reclaim VAT on business expenditure, making false statements in insurance claims on behalf of landlords which resulted in unjustified county court judgements against former tenants, and contempt of court for breaching a restraint order made under the Proceeds of Crime Act 2002.
His sentence, announced yesterday, includes two and a half years for the fraud-related offences and three months for the contempt of court offence, to run consecutively. He has also been disqualified from acting as a director for nine years.
The council’s trading standards department is now conducting a financial investigation under the Proceeds of Crime Act with a view to seeking a confiscation order.