An ARLA firm that is in the process of being liquidated has been the subject of complaints to police.
The liquidators of Charterhouse, in Essex, are liaising with both ARLA and the TDS to try and get money paid to creditors.
Police have also confirmed they are investigating.
Charterhouse Professional Property Services, formerly Walker’s Professional Property Services, operated in Brentwood, Essex.
It ceased trading on May 13, apparently with debts of up to £754,000 owed to over 100 creditors.
Ian Potter, managing director of ARLA, yesterday confirmed that Charterhouse was an ARLA member, adding: “Landlords and tenants that use ARLA member agents benefit from ARLA’s Client Money Protection scheme.”
The firm was run by Jeffrey Terrence Gadsden, with a registered office at Bleak House, High Street, Billericay, according to a report by London liquidators firm Benedict Mackenzie.
According to the report, after September 2012 “[Mr Gadsden] remortgaged his property and used that money to support himself without drawing a salary from the company”.
It continues: “The final straw was when one of the company’s biggest clients gave immediate notice to terminate a contract and the company’s letting staff gave notice to leave the company.”
The report states that “in the last 18 months there was very little income into the company”.
Liquidator Grant Pegg, of Benedict Mackenzie, said: “We are liaising with the Association of Residential Lettings Agents, the National Federation of Property Professionals, the Tenancy Deposit Scheme and the company’s insurers in order to expedite payment of monies to all affected parties.”
A spokesman for Essex Police said: “A number of complaints have been received about a company in Brentwood and inquiries are continuing.”
* Any landlord or tenant who has not received funds to which they feel entitled should visit the ARLA website (link below) where an application form for compensation can be found. Alternatively, enquiries can be made on 08443 870555.
Brentwood Gazette report: