Fresh Start Living FreshStart Living Property Investment Swinton,Salford,Manchester, Nationwide

On Monday 29th January 2018, following a private prosecution, Andrew John Camilleri was unanimously convicted by a jury at Manchester Crown Court of making false representations in an Individual Voluntary Arrangement ("IVA”) proposal contrary to section 262A of the Insolvency Act 1986. The prosecution was brought by one of Camilleri’s many creditors Summary of Case An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy and a formal process requiring the debtor to tell the truth to his/her creditors. It was the prosecution case that, between 18th February and 17th March 2011, Andrew Camilleri made a series of false representations in his IVA proposal, which he later presented to his creditors for approval. If the IVA Proposal had been approved by his creditors, it would have wiped out all of Camilleri’s debts (in excess of £9 million) and given him a clean slate whilst leaving his creditors with a pittance. In 2007/08, Mr Camilleri persuaded various creditors to part with their money to finance his developing property empire.

He asked for bridging loans on a short-term basis, (for a matter of weeks), and offered his creditors security against the properties he was buying. Instead of repaying the money and interest under the bridging loans, Camilleri convinced his creditor to instead release further funds, and roll up their interest they were due, for Camilleri to buy more properties. One witness described how Camilleri would "say, literally, whatever he has to say in order to persuade anyone to part with their money and produce questionable documentation/substantiation to achieve this objective.” Camilleri put new deals to his creditor on a constant basis, until one day, he was to tell them that, in fact, there was no security against the properties for their loans, which had all been mortgaged up to the hilt in debt. Camilleri’s creditors then pursued bankruptcy proceedings, but in order to stave off the threat of bankruptcy, on 18th February 2011 Mr Camilleri prepared an IVA proposal, pretending to set out his total assets and debts, and presented it to his creditors for their approval on the 17th March 2011.

Camilleri stated in his IVA proposal that he had no assets of any value for the benefit of his creditors, but that his cousin would lend him £100,000 that could be used to pay towards his debts. Mr Camilleri stated that his total unsecured creditors were owed c.£5.7 million, and so they would get 1.29 pence in the pound. In practice, accepting this offer would mean that one of his creditors would get £29,025 to cancel the debt of £2.25 million that Camilleri owed. In fact, Camilleri had not declared the totality of his debts in the IVA proposal, which were substantially more than c.£5.7 million. For example, Camilleri declared one of his unsecured creditors, Rooftop Mortgages, as being owed only £160,000, when the accurate figure was £100,000 more, at £269,519.44. Had Mr Camilleri’s creditors accepted the IVA proposal, they would not have even seen the 1.29 pence that Camilleri had promised them.

In respect of his assets, Camilleri declared in his IVA Proposal that he owned 100% of the shares in Fresh Start Living Limited that had nominal value. In fact, Mr Camilleri was not the registered owner of the shares, and it was the prosecution’s position that the company was plainly not of "nominal value”. The prosecution produced evidence showing that Fresh Start Living had over £1.125m in one of its bank accounts only months after Camilleri had presented his IVA Proposal. Evidence also showed that during the year 2011, Fresh Start Living’s fixed asset register recorded it as owning a Maserati Quattroporte, an Aston Martin DB9, an Aston Martin V8, an Audi S8, and a number of Mercedes vehicles and vans. Camilleri declined to call any evidence and left the jurisdiction for Switzerland on the last day of trial, before the jury returned their verdict. On Wednesday 31st January 2018, His Honour Judge Field QC sentenced Mr Camilleri in his absence to a custodial sentence of 12 months, suspended for 12 months, and a £10,000 fine.    

The Mill / Orchid Point property in Trafford, UK developed by ALD /FSL 

The property is sold by Absolute Livings Development Ltd (ALD)sold with a 10 year net rental guarantee of 8.5% p.a. and the rentals for the first 2 years are used to offset the selling price. The sales agent called Hong Kong Homessaid no need to pay ground rent or service charges for the first 10 years because ALD will pay. The sales brochure also says 8.5% net minimum annual rental return. The development project is called The Mill with 38 units, 33 3bedroom duplex flats and 5 penthouses. Most units were sold by HKH in 2014. 

The buyers are mostly from Hong Kong and in Oct 2015 received solicitors letters asking payment of ground rent and service charges for 2014 and 2015. ALD did not reply to any queries as if disappeared. No quarterly rent account statements was ever produced. Edwen Yew resigned as director 30 Aug 2015 and transferred all the share to a Mr Leong. He appeared to still play an active role. At the same time, ALD sent a few emails to all unit buyers to offer the sale of freehold and mentioned that by paying for the freehold, unit buyers will not have to pay the ground rent any more. ALD changed ownership again in Dec 2015 to DMH & Co by Daniel Mark Harrison. The lease was sold by a company called FSL Properties Empress Mill Ltd and the management company named in the lease is called Orchid Point Management Company Ltd. The management agreement was with ALD. ALD Property projects sold by Hong Kong Homes have similar or completion problems, Summerberry Residences, Olicana.

When pressured by groups of buyers, Samson Law said he would resolve the problems with Charles Cunningham and Tim Ackrel (using their DS7 emails).

The unit buyers afraid they may not get the rental after the 2 year guaranteed period even if give the 60 days notice under the management agreement because ALD appears to have disappeared. The 5 penthouse units are not yet completed because no work was done for over a year and the main staircase to enter the block is said to be unfit for people walking so there may be fire and safety compliance. Not sure the duplex design may meet the safety requirement. When paying for the initial deposit, the buyers were told by Hong Kong Homes they would get a specified free car park. Later, they were told such car park was not available but replaced by a right to park outside the building. 

From past reportings on the news, the companies concerned(Empirical, FSL) have similar directors Charles Cunningham, Wright. The role of solicitors are also very confusing:

Tim Ackrel

l       Acts as seller company [FSL Properties Empress Mill Ltd] solicitors in the sale agreement    :  Tim Ackrel, Empirical Property Group Ltd

l       Tim is sole director of a company called DS7. DS7 is the company that lends money to ALD to purchase FSL properties. ALD has charged its asset to DS7.

l       Tim is also the legal head of ALD (so ALD has charged its assets to a staff?)

l   Tim acts both for the landlord (FSL Properties Empress Mill or ALD Orchid Point), and the management company (ALD Ltd) He uses the landlord’s name to demand money from unit buyers but he totally ignored the responsibility of the management company to pay the ground rent and service charges per the management contract. He is using his legal expertise against the unwary overseas buyers? 

The solicitors letters were sent at the same time regardless of when individual buyers purchased the units but the purchase time may vary many months. If they had sent the first letter on first due date in late 2014 or early 2015, other potential buyers might know and not buy. In short, this may be a well structured sales scheme. Other development projects by ALD sold by Hong Kong Homes are Summerberry Residences, Olicana and Alexander House. The last two are not yet completed. Summerberry buyers also received solicitors letters. No work appeared done for the last year on the outstanding work at the Mill (staircase, penthouses), and yet they are selling a site opposite calledThe Mill B via a sales agent called MIG, a Malaysian group. Edwen Yew is also Malaysian.  

Developers Link To Failed Firm

A company behind a controversial bid to turn a derelict government building in Runcorn into flats has distanced itself from another firm that went bust under a cloud of anger from investors and the Advertising Standards Agency in 2013.

Absolute Living Developments (ALD) has applied to convert East Lane House next to Runcorn Shopping Centre into 448 studio and single-bedroom flats.

On Friday, it confirmed to the Weekly News that it had taken over some part-completed developments from Fresh Start Living (FSL), which went into liquidation in 2013.

The company’s statement came after the Weekly News found loan documents lodged with Government business website Companies House relating to third party lender DS7 Ltd.

The forms showed that DS7 had loaned cash to ALD for the East Lane House project, with the terms of the contract granting DS7 Ltd power to appoint one of its officers as a receiver in the event that ALD goes into receivership.

The contract also gives DS7 Ltd the power to ‘take possession’ of the flats in the case of ALD’s demise.

Another form lists the recipient on a forwarding address for DS7 Ltd as ‘for the attention of Charles Cunningham’.

The Weekly News asked ALD whether this was linked to former Fresh Start Living director Charles Alexander Clunie Cunningham, who was the subject of a critical article by Daily Mirror investigative report Andrew Penman in September 2013.

Further documents on Companies House showed that a former Fresh Start Living director, Philip Wright, had been a director at ‘Absolute Living Developments (Orchid Point)’ – another company with a loan from DS7 Ltd.

ALD’s spokeswoman said Philip Wright had been on the board of a ‘vehicle’ that owned a FSL development site acquired by ALD.

He was replaced after the acquisition.

She said there was ‘no relation’ between ALD and DS7 Ltd.

Fresh Start Living went into liquidation in 2013.

Andrew Penman, of the Daily Mirror, said the firm had left investors fuming after they alleged they were left out of pocket having pumped thousands of pounds into properties renovated by FSL.

FSL was also investigated by the Advertising Standards Authority (ASA) after a complaint was made over the firm’s claim to have made a £4m profit. The ASA upheld the grievance.

The Business Desk reported in September 2013 that Stockport Council and Greater Manchester Fire And Rescue Service were taking separate actions over safety breaches.

An ALD spokeswoman said: “Absolute Living Developments have acquired a number of developments around the country.

“Some of these were part-completed developments from Fresh Start Living which were acquired when it went into administration, one being Orchid Point whereby Absolute Living Developments acquired the vehicle that owned the site.

“Philip Wright was on the board of the vehicle and was replaced when the acquisition completed – there is no other connection between Absolute Living Developments and Fresh Start Living.

“DS7 Limited is a lender to Absolute Living Developments on certain developments.”

The Weekly News tried to contact DS7 Ltd for comment.

Halton Borough Council’s development control committee is due to hold a ‘special meeting’ tonight to decide whether to allow ALD’s proposed conversion of East Lane House into flats.

The scheme has been blasted as ‘barmy’ by Halton Lea ward’s Cllr Dave Thompson.

ALD insists it will attract young professionals and key workers.

A LONDON property developer is behind a bid to wind up Salford buy-to-let specialist FreshStart Living.

Roger Walters, chief executive of Supercity UK which operates three aparthotels in the capital, is chasing FreshStart over a £20,000 deposit he paid on 10 flats at a proposed FreshStart student scheme in Nottingham.

He says the scheme is now not going ahead and he wants his money back, but FreshStart insists the development is on track, although it has been delayed.

The company was planning to convert a 30,000 sq ft office building at the Victoria Shopping Centre into 157 student apartments in time for the 2012-13 academic year.

Mr Walters said: “They didn’t own the property and they never bought it so there was no chance of developing it so I asked for my money back, and they just don’t give it back, it’s incredible, they just don’t.”

Mr Walters issued a statutory demand, which gives a debtor 21 days to pay, and then issued a winding-up petition which was heard in London on Monday. The case was adjourned to give both sides time to submit evidence.

FreshStart’s chief executive Charlie Cunningham said it was “rubbish” that the Nottingham development had been abandoned. “We’ve exchanged contracts which makes us the beneficial owner and we’re going through the planning process to change it into student accommodation. It’s taken much longer than we hoped it would but there’s no question of the scheme not going ahead.”

He added: “He’s reserved six units and is contractually obliged to buy the units and complete. We’ve offered him a number of alternatives but that hasn’t come to anything.”

But Mr Walters told TheBusinessDesk he was not interested in other developments. He said: “I’m not going to let it go, I’m going to take it all the way. They’re not denying they have the money, they even offered to move it to another scheme. They’re not denying it, they just don’t want to give it back.”

A developer for 30 years, Mr Walters said he wanted to “let someone else do the developing” and has also put a deposit of £75,000 down on six flats at FreshStart’s Trafford Press scheme in Manchester which has not yet been completed.

as featured in businessdesk.com by James Graham

Notice Code: 2450

NEW INFORMATION FORUM to enable Investors in any of the Freshstart Living/FSL companies to voice any concerns/problems we may havehad. Please use it, and publish the following website address wherever you can.
Hopefully, this will prove beneficial for the many people who have invested money in fresh start living property investments.

http://freshstartinvestors.freeforums.net

 
also, direct email to join the group of concerned investors:     mardwick@inbox.com

 

There is now a single collective forum to enable Investors in any of the Freshstart Living/FSL companies to voice any concerns/problems we may have had. 

Please use it, and publish the following website address wherever you can. Hopefully, this will prove beneficial for the many people who have invested money in fresh start living property investments. 

www.freshstartlivinginvestors.blogspot.com

also, 

direct email : mardwick@inbox.com 

Most if not all the 'glowing reports' of only positive experiences with Freshstart Living are posted by employees of Freshstart Living.    How do I know this ?   Because of the dates they were posted.   On those dates most of the investors at developments in Manchester and Greenock were in dispute with Freshstart.

I know for a fact that non of the people that invested at those two sites can be classed as 'satisfied' with the cavalier and fraudulent conduct of FSL and it's directors.

Rather than operate as an above board, honest and straightforward company they would rather post rubbish on here as damage limitation and to try and convince more innocents to invest and continue with their dubious activities at new developments.

FreshStart subsidiary facing winding up petition

A WINDING up petition has been filed against a subsidiary of the Salford property developer FreshStart Living.

The case against FSL Properties Montgomery will be heard in Manchester on Monday.The business was set up in 2011 to buy Montgomery House, a former YMCA building in Whalley Range, south Manchester, which FreshStart turned into student flats and sold on to individual investors.

Last year FSL Properties Montgomery sold the freehold to Stratford-upon-Avon-based property group Marden Ltd for 930,000.

But a petition is being brought against the company by Dr Ahmed Al-Sened of Wilmslow, who is being represented by Manchester law firm EOS.

FreshStart claims Dr Ahmed Al-Sened is not a creditor and it plans to defend the action when it is heard in court.

In January the building's management company, FSL Management Montgomery, was wound up following action by investors who bought flats in the block but said tenants' rent was not being passed on to them. 

Accountancy firm RSM Tenon has been appointed liquidator by the Official Receiver and claims 140,000 has not been paid. Management of the building was handed over to Hertfordshire-based Residential Management Group before Christmas.

Meanwhile, it has emerged that a FreshStart student scheme in Bradford was shut down in November for breaching fire regulations.

Following an inspection of Provident Financial's former headquarters, Colonnade House in Sunbridge Road, West Yorkshire Fire Service issued a prohibition notice. The fire service said there were inadequate means of escape and inadequate means for giving warning.

FreshStart acquired the nine-storey 1960s building in 2011 and was converting it into 200 student rooms. At the time of the inspection only the top three floors had been completed and were occupied by up to 70 students who were forced to move out.

FreshStart said a re-inspection had taken place in the past two weeks and it should be signed off soon. A register on the Chief Fire Officers Association website shows the notice is still in force.

If you look at the insolvency register it is very suspicious how many people with the surname Camilleri appear in the Swinton area who have been insolvent. Have a look for your selves as well, its free access to public. Also Andrew Camilleri still calls all the shots in the office and referred to as boss by the sales team, I know this to be true as I was there, funny that this is the case considering he officially isnt meant to be linked. If there are any insolvency proceedings being carried out such as a CVA I hope the Insolvency Practicioners investigate these coincidences thoroughly, fortunately this is an industry I know very well also. 

Please see the following link a press release re the liquidation of Fresh Start Living MM Ltd: 

http://www.rsmtenon.com/Media-Centre/Press-Releases/2013-press-releases/06-February-FSL-Management-Montgomery-Limited-trading-as-Fresh-Start-Living-placed-into-liquidation.aspx 

Any owners at Greenock who have not already made contact with the owners groups can do so by contacting nilak@btinternet.com.

IN THE LUTON County Court

Claim number 2QZ22139

Luton County Court
2nd Floor, Cresta House Alma Street
Luton Bedfordshire LU1 2PU 

Tuesday, 15th January 2013

Before:

DEPUTY DISTRICT JUDGE MCCOURT

- - - - - - - -

SK------
Claimant

-v-

FRESH START LIVING LIMITED

Defendant

- - - - - - - -
MR STEPHEN DYER (of Neves & Dyer) appeared on behalf of the Claimant.

THE DEFENDANT did not attend and was not represented.

- - - - - - - -
 
DEPUTY DISTRICT JUDGE MCCOURT: I should say, Mr Dyer, as is customary, this hearing is being recorded. You may not know that, Mr Dyer. You represent the claimant, Mr Skinner.

MR DYER: That is correct. 

DEPUTY DISTRICT JUDGE MCCOURT: And you may not know that yesterday there was an email from Fresh Start, from one Hannah Jones, apparently, said to be for and on behalf of Chris Hutchinson, in-house lawyer. "Please note that there is nobody for the company available to attend the proposed hearing at Luton tomorrow. We apologise for the late notice provided. If we are able to arrange, can you please advise how?" It is not for the court to advise parties. The parties, if they are making applications to set aside judgment, they should surely, of course, attend. Have you had any correspondence, Mr Dyer?

MR DYER: No. I had late instructions on this matter. I know what it is about. All I have seen is an application to set aside which says

DEPUTY DISTRICT JUDGE MCCOURT: Let me tell you. I have a limited file and there are cryptic notes. The claim is for a 15, 000 deposit for A failed property purchase, plus interest and costs. "Fresh Start Living Limited represented to me verbally and by way of email that they had acquired a property known as Victoria House, Milton Street, Nottingham. FSL verbally stated that the property conversion would be completed by September 2011. On 30th June 2011, FSL by way of email set out the time scale for exchange and completion. Based on these representations, on 7th July 2011 I signed an agreement to purchase. My solicitor" That was not you at that time, was it?

MR DYER: It was.

DEPUTY DISTRICT JUDGE MCCOURT: It was you. "My solicitor later discovered FSL never owned this building and may never be in a position to purchase it". Is that correct?

MR DYER: That is correct. 

DEPUTY DISTRICT JUDGE MCCOURT: "FSL refused to refund our deposit, which is unreasonable". So there was a judgment in default. It appears that that process was quite proper, i.e. the judgment was a regular judgment, because the application says so. The application is signed by one Philip Wright, whose status in the company is not made known to me - or to you, presumably.

MR DYER: No. 

DEPUTY DISTRICT JUDGE MCCOURT: He says, "We missed the time frame stated in the CPR due to an administrative error by one of our temporary employees." This takes the case out of CPR 13.2, which, of course, is the provision for irregular judgments and I am left with an application. I am not going to adjourn this matter. I am going to deal with it. That means that it is under CPR 13.3, cases where the court may set aside a judgment entered under part 12. "The court may set aside a judgment entered under part 12" - that is the default judgment, of course. It was a default judgment, was it not? 

MR DYER: Yes, That is correct.

DEPUTY DISTRICT JUDGE MCCOURT: I should for completeness say that judgment was on 1st November. "If the defendant has a real prospect of successfully defending the claim or it appears to the court that there is some other good reason why the defendant should be allowed to defend the claim".

All we have from the defendant is the application which simply says - this is Mr Wright's statement in support of the application - it confirms the administrative error and then says, "The judgment came as a shock as we wished to robustly defend the claim that has been served upon the defendant company. I believe, if the courts were in receipt of the full written and incidental evidence, they would not have come to this decision". That does not help me. There is no reason, of course, why the witness statement should not give me some clue as to what, indeed, the defence is and, similarly, I am not too impressed by the fact that the defendants are not here. They could, of course, have instructed a solicitor or an agent to attend. 
Is there anything further that you want to add, Mr Dyer?

MR DYER: In a nutshell, I think that you have argued my case for me, sir. 

DEPUTY DISTRICT JUDGE MCCOURT: Yes, because the defendants are not here, I thought it appropriate for the purposes of the record to state the reasons why I am, therefore, dismissing the application. I am going to do precisely that. I am not striking it out, I am dismissing it, because I have dealt with it. Application dismissed.

Costs, Mr Dyer?

MR DYER: I have done a very foolish thing this morning. I thought that I should bring my original file in connection with the purchase, which I took out of our archives, and I left the file that I prepared to bring to court on the side.

DEPUTY DISTRICT JUDGE MCCOURT: Are you actually on the record?

MR DYER: I was about to file the notice of action. I had all that prepared and left it in my office in Hitchin.

DEPUTY DISTRICT JUDGE MCCOURT: Right. I am going to make, I think, the appropriate order.

MR DYER: The costs that I worked out this morning were 546 plus VAT.

DEPUTY DISTRICT JUDGE MCCOURT: Well, you are not on the record.

MR DYER: So I am in difficulties. 

DEPUTY DISTRICT JUDGE MCCOURT: You have not prepared a schedule, so I am going to say no order as to costs. Should this proceed, no doubt you will file notice of acting and away we go, but I think that the defendant will now have an uphill struggle as the defendant has, of course, voted with his feet by not attending. There we go. Application dismissed.

MR DYER: I am obliged, sir. 

I believe that the BBC are looking into this matter as we speak! Be under no illusion it is a Ponzi scheme.... Be warned.

Fresh Start Living Limited has approached creditors with a view to agreement to a CVA (company voluntary arrangement). It is insolvent.

Any creditor considering this option should bear in mind that the director of Fresh Start Living Limited, Philip Wright, placed his last company (Wrightchoice Developments Limited) into a CVA which failed.

Wrightchoice Developments Limited is now in liquidation. The value of creditors is 6million.

NO ONE HAS RECEIVED A PENNY.

I can tell you that the positive reports above were placed by employees of Freshstart Living. AVOID THIS COMPANY AT ALL COSTS. YOU HAVE BEEN WARNED!!!!

I had a great experience with them.  It's like my bank.  I have never had any problems with them but my friend has. I must admit she is a very difficult person to deal with sometimes, but still. 

I am also a firm believer that if you are rude to someone, they are less likely to want to help you and you get nowhere. No one wants to do you any favours if you are difficult to deal with.

I have regular contact with the company and never had any issues after buying property. The BBC use their CEO as a property expert, don't you all think the BBC check out their guests for BBC Breakfast before throwing them on the TV.

Like Robby I also find this hard to believe. I purchased a number of units a year or so ago and I've only ever had good experiences with them. They've made me plenty of profit on what was my retirement investment and I've recently recommended them to a friend who's looking to invest also.

Like Robby I also find this hard to believe. I purchased a number of units a year or so ago and I've only ever had good experiences with them. They've made me plenty of profit on what was my retirement investment and I've recently recommended them to a friend who's looking to invest also.

I find this difficult to believe.  They always call me back and I can usually reach someone easily.  Montgomery House is mentioned above and is made out to be terrible but I would suggest a visit.  It's rather nice. I don't know anything about this Bispan one but I can vouch for Montgomery.  So based on this I would recommend that people look for themselves.

Just seen this on a forum

Thanks to everyone for the information. Been considering an investment with FSL in Greenock (Waterfront Campus). A little due diligence has revealed the following. FSL are currently selling student pods in Greenock. However they have not yet purchased the property and it is still for sale through Knight Frank (you can check this on their commercial website). Solicitors have apparently been instructed but NO deal has yet been struck. Which means another buyer could still surface and purchase the property from under the very noses of the individual purchasers of the pods. I wonder how easy it would be to get our money back if this should happen, given the info previously posted about the directors.

Also, the pods are advertised by FSL as ready for occupation next month with the new student intake but this is clearly not going to be possible as work in preparing the rooms has not yet begun, nor can it until the sale is completed.

Interested to know if anyone has bought a pod in Greenock and what their due diligence has revealed.