Two directors who sold worthless plots of land to investors for a total of £2.2m have been banned from working as company directors for a combined 26 years.
The bans follow an investigation by a specialist team within the Insolvency Service and after the companies involved were wound by HM Revenue & Customs.
The FSA froze the companies in 2011 after complaints from members of the public. The regulator said the sale of the land amounted to an unregulated collective investment scheme.
The pair involved were Mehmet Husnu (also known as Matt Hudson) and Ali Seytanpir (also known as Alex Townsend). They operated through OFG Investments and GIG Properties.
Their companies sold plots of land on a former World War II airfield in Devon, despite the local authority not allowing development on the site.
Of the £2.2m paid by investors, £1.4m went to Husnu, Seytanpir and a relative’s company in Northern Cyprus.
Husnu has been banned from acting as a director for 14 years, while Seytanpir has been banned for 12 years.
Official receiver in the Pubic Interest Unit Anthony Hannon says: “As with all the other landbanking companies that the Official Receiver has dealt with over many years, these companies have brought misery to unsuspecting members of the public, who were persuaded to part with their savings in exchange for virtually worthless plots of land.
“The company was run entirely for the benefit of the directors and salespeople, at substantial cost to the investors who had been misled and have lost their money in what was never a realistic investment.
“In all our years of dealing with landbanking scams we have not seen a single piece of land that has been sold in this way actually go on to obtain planning permission.”