Man jailed for running illegal sale and rent back scheme targeting vulnerable homeowners

A 49-year-old man has been jailed for targeting vulnerable homeowners and encouraging them to flog their homes on the cheap via an illegal ‘sale-and-rent-back’ scheme.

Through a firm called Secure Property Consultants Ltd, Rajinder Gill targeted homeowners in financial difficulty, claiming he could sell their homes quickly, offering them cash advances and saying they could stay in the homes as tenants. 

Victims were encouraged to sell their houses at less than market value, while he charged excessive, confusing or hidden fees – totalling £925,233. Some victims were evicted from their homes. 

The Financial Conduct Authority said that once Gill got wind of the probe into his and his accomplices’ activities, he tried to conceal his activities and shut down the company. He also warned clients not to talk to the regulator. 

On Wednesday, the FCA said Gill had been jailed for two and a half years for running an illegal sale-and-rent-back scheme without being authorised, and illegally providing credit agreements and mortgages.

In sentencing Gill, His Honour Judge Weekes said ‘there was a pattern of systematic exploitation’ and the ‘victim impact [was] stark and troubling across the victims’. He added Gill was ‘dishonest and manipulative’ and the sale-and-rent-back agreements ‘particularly odious’. 

Amandeep Heer, Gill’s partner, received a community order for two years with a condition of 250 hours of unpaid work for her role as an accomplice. 

Jetinder Sandhu has completed 100 hours’ unpaid work over 12 months as a condition of a 15-month suspended imprisonment, which was suspended for 18 months. 

Gill pleaded guilty to 27 offences in relation to sale-and-rent-back agreements, as well as crooked credit agreements and mortgage contracts. He asked the court to consider a further 12 offences of the same nature at sentencing. Following a trial, Heer was found guilty of committing three similar offences.

The FCA has launched confiscation proceedings to deprive the defendants of the proceeds of their crimes, with a view to compensating victims.

Gill, based in Middlesex, was also disqualified from being a director of a company for eight years. 

On the Companies House website, it is evident that Gills’ firm, Secure Property Consultants Ltd, has been dissolved. However, another business he is a director of, Secure Property Commercial Limited, remains active.  

The FCA first started investigating Gills’ involvement in sale-and-rent-back schemes in 2013.

Steve Smart, executive director of enforcement and market oversight at the FCA, said: ‘Mr Gill and his accomplices preyed on vulnerable homeowners, turning financial difficulty into misery to fill their own pockets. 

‘Sale-and-rent-back comes with significant risks. 

‘If you are considering using it, always check the provider is authorised by the FCA.’ 

Any consumer who thinks they may have been affected by the activities of Gill, Heer or Sandhu should contact the FCA’s investigation team by emailing alva.info@fca.org.uk.