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White Collar Crime - The Process. Part 2.

The High Level Process: Work in Progress.

The process, documents and risks will all come together in a completed pack for download by the end of the articles and mapping exercises.

The Customer, The Sell.. Sales Brochure / Pitch.

1. The Customer, Buyer of Property, You!

The customer sees a property or is pitched an investment vehicle based upon figures which he may or may not have a deposit? These he will believe to be correct?

Always check against the current market and where that market or cycle is going.

The property if a new build will have been given a valuation by a RICS surveyor. Resale properties estate agent or similar.

Lesson: There should be 3 or more similar properties in the area to measure the value against, although i couldn't find any in retrospect with the Dylan Harvey experience.

With a new build however my RICS surveyors stated a new build premium was added and this is where we start to get into the murky realms of creating ficticious value and helps add to the wider fraud value and inaccuracies supporting fraud.

In the Dylan Harvey Residential case taking a Manchester apartment as an example we find square footage differences, attribute differences such as en suites missing, car park spaces missing included in the RICS and sales docs valuation and a state of the art finish with all electronic management never appeared in the final fix?

The wrong asset was delivered and property mis description is one cause of the finance gap.

Result, Negative Equity. Poor Cash flow.

Another element to look out for here is that the Sales Brochure off plan prices pre date the RICS valuations and are correct to the penny?

How does that work in an independent "Bank/RICS" survey. The process is under the governance of the Banks. This was proven by the statements on the footer of another valuation form for a property with Freedom Finance - Merryl Lynch.

To the Bank there is no risk, YOU pay for the RICS survey but the surveyor acts on behalf of the Bank? Interesting.

The Banks agent overvalues it possibly on mis description in the first place and Banks pay out the overvaluation market figure to the seller as they dont actually pay out only raise a figure on the T1 ledger based on the RICS/ Bank valuation.

No Loss to the Bank. They use no money of their own just raise a figure an electronic entry based upon property valuation by their agent following their process.

The money is raised from your promissory note, security or signed contract with a value on it. Your Mortgage.

The Banks then,




Possibly other processes?

To create even more funds on their side of the system.

Fraud works well for the Banks.

From expert witness report by Knight Frank:

2. The Solicitors and IFA 's were pre appointed therefore if you wanted to benefit from the tremendous "value" of the investment for speed and management ease you had to use the named funding and legal parties only.

You couldn't select your own legal representative or IFA and source of funds or get an independent survey done.

This in the Dylan Havey Residential case proved to be the undoing of a number of these regulated parties.

Specifically to the Manchester "investment" Deutsche Bank were the providers of the "loan" and as we shall see later on, the property value was irrelevant as their CDS (Collateralised Debt Swap) or Insurance covers them against failure of the bond payment with a 10:1 or 20:1 return at the Securitised bond MBS/ CDO level. This is what happens to your mortgage contract.

Failure of the properties within a bond or Mortgage Backed Security MBS works well for the Bank.

In the Dylan Harvey scenario many people went bankrupt within a short space of time as over valuation saw to the fact that with growing interest rates at that time pre market collapse the "investments" weren't sustainable whatsoever.

RICS valuations didnt cover rentals or true market value only the predated sales documents of Dylan Harvey Residential?

When people go bankrupt the property is taken away but as we will see the bank repossession effectively should be illegal as the security or promissory note/ mortgage has already been sold within months through securitisation generally at 120% of the face value.

In our example £100k contract will be sold at £120k but real market value of the property may for example be £70k.

This value impacts the greater bond value which goes to make up somebody's pension scheme?

So the advantages of overvaluation in no way impacts the Bank it helps them.. Follow the money.

See The Big Short and associated clips in Parts 3 - 8.

The loan application forms showed the discount value not the RICS valuation, but in the outcome and questioning the solicitor before he went to the wall my documentation showed the full RICS valuation was paid to Dylan Harvey Residential? £188,950?

Deposits are paid after reservation fees and disbursements the Loan Application Form (LAF) at no point mentions a

Power Of Attorney (POA) being written into the deal.

Observing Denise Braileys investigative work we see how in Australia, New Zealand also in the UK and Irish market elements are left out of the equivalent docs within the banking process of the UK.

In the Dylan Harvey scenario im looking to trace these but initial enquiries with the IFA used is bearing no fruit?

Next step are the Banks but im not holding out much hope there either.

I had a chat with my own ex IFA who sold his business and he said in all the years he'd been an IFA he was never told or seen a POA in the document set a client signs for a mortgage?

At the time of writing and conferring with SME Alliance members their experience was as mine attempting to deal with the reporting and action against crimes of this type they go unchallenged as the cost of legals when going after parties is too excessive.

To go against Banks as one commentator stated in the clip below you need to take 10 years out of your life and have very deep pockets and effectively millions in the bank.

Noel Edmunds commentated on the 18th September that Lloyds solicitors were charging themselves out at £2000 per hour. Nice work if you can get it?

Trailer Spank The Banker.

Part 3.

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