Issue Date:  -  Friday, 16 September 2005

Discredited British property promoter targets WA

A discredited British property promoter is targeting Western Australians with an alleged land speculation scam.

Today Consumer Protection Commissioner Patrick Walker warned Western Australian investors against dealing with Stephen James Cleeve and his business European Land Sales Australia (ELS).

ELS, the owner of large tracts of rural land in England, is selling small parcels of that land to individual investors with the opportunity to make significant gains following subdivision.

The application for planning approval to subdivide will be made up to nine years after all the lots have been sold off.

"This is a high risk and speculative investment," Mr Walker said.

"The implication is that planning approval may never be sought unless all the lots are sold. The investors will be left with a parcel of land many thousands of kilometres away that is worth a fraction of the price that investors paid for it."

ELS is spruiking its questionable scheme at the Perth Money Show held at the Perth Convention Exhibition Centre this weekend.

Investors are asked to pay a 10 per cent non-refundable deposit up front with the remainder of the purchase price of up to $44,000 within 14 days.

It is only two weeks later that the contract to purchase the land is produced by ELS for signing.

"This is the equivalent of handing over your money without having anything to show for it," Mr Walker said. "You are not provided with any security."

ELS is not registered as a business in Western Australia, which is an offence under the Business Names Act.

In July 2004, a British Labour MP described ELS in the House of Commons as "unscrupulous property developers". Investors, in one particular land offer, were warned there was little chance of  "the field" getting planning permission.

Further, Mr Cleeve has been banned from being a company director in England until 2008.

"This should leave no one in doubt to the grave risks of dealing with ELS and Mr Cleeve," Mr Walker said. "I urge people to steer clear of these property promoters."

Telephone 1300 30 40 54 or email consumer@docep.wa.gov.au