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Research by the Elliot Group shows that investors’ money was used to make unsecured loans

Investors have expressed concern about how a property developer has used their deposits to make unsecured loans.

Last week, investors in the Infinity Waters program on Leeds Street shared their guilt, shame and fear after the program collapsed.

The Elliot Group’s Infinity Waters, Aura, and The Residence programs all came under administration last year.

CONTINUE READING:Elliot Lawless Dream Program investors share their pain, shame, and guilt

Liverpool businessman Elliot Lawless, who founded the group, said his arrest in December 2019 on suspicion of conspiracy involving fraud, bribery and corruption led to the collapse of operations.

The police investigation continues, but Mr. Lawless denies any wrongdoing.

Following an investigation by the Elliot Group, Liverpool-based ECHO can now reveal that Mr Lawless used the money from investors to extend large unsecured loans to affiliates in 2019.

The legal documentation filed with Companies House shows that the various intra-group loans were granted before December 2019.

Over £ 4 million has been loaned unsecured from Residence and Infinity to Aura alone.

The Residence Program has loaned the Aura Company £ 3.5 million and Infinity Waters has loaned Aura £ 746,000. The loans were unsecured as they were not secured by debt securities.

Equity Group Limited, a company controlled by Mr Lawless, loaned the Aura company £ 6,415,634 in 2019. However, this loan, which did not include investor funds, was protected by a bond.

Legal documentation filed with Companies House shows that the Infinity company has received £ 28 million from investors who have deposited funds.

Elliot Lawless of the Elliot Group

The website was purchased for around £ 5,050,000 and the fees were around £ 4.67 million. Investors put around £ 27,292,872 in, but it’s not yet clear how much was paid to the Vermont construction company.

Investors received notification in September 2019 that the financial firm was providing funding to Maslow Capital, but it is now clear that Maslow did not grant a loan.

Mr. Lawless also sold a large stake in the Infinity Waters site to a sister company. Land was transferred from Queensland Place to the Elliot Group and from Parliament Place to 1DOM.

An Elliot Group spokesman said, “Mr. Lawless has provided all necessary assistance to the administrators of his various developments, including providing a full business statement for each project showing the allocation of all funds. It remains an ongoing, formal process, and that’s the way he has to deal with requests of this kind. “

Max Murphy, who invested in Infinity Waters, said, “I am concerned to learn that Elliot used investors’ money to make unsecured loans within the group. It now appears that the company had some financial problems prior to Elliot’s arrest . “

A letter from administrators to investors recently revealed that investors face “enormous losses”.

It read: “The failure of the company has caused enormous losses to large numbers of investors, commercial and ordinary creditors. This is not the Joint Administrators’ fault. The failure and the structure of the company are subject to an ongoing The creditors have decided that liquidators should be appointed and that the liquidators continue the investigation “.

Liverpool real estate company Legacie Developments has agreed a deal with administrators David Rubin and Partners to purchase Infinity Waters and The Residence. Both sales must be approved by a court.

Last week, Infinity Waters investors told ECHO troubling stories about the breakdown of the program that hit them.

Mom Jacqui Parker said she bought two units and is planning to move to Liverpool with her son, who has mild learning difficulties. Mrs. Parker from London said the plan seemed perfect for her, but now she was left with nothing.

Speaking to ECHO in 2019, Mr Lawless told ECHO that after starting a building services company in 2010, he started buying land on the city’s waterfront.

He said he was committed to regenerating the city and supporting jobs in the region.

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Richard Dement

The author Richard Dement