Failed buy-to-let guru back with new scheme

Published 12th Dec 2008

Buy-to-let evangelist Jim Moore - whose Inside Track Seminars (ITS) and Instant Access Properties (IAP) firms went bust earlier this year, leaving wannabe "millionaires" as creditors - is back with a new "minimum investment and maximum return" property deal.

Moore's new vehicle is IAP Global, born out of the ashes of Moore's former buy-to-let empire. But a liquidator is set to probe deals between collapsed company IAP and Engle Properties, a company Moore incorporated in the British Virgin Islands.

Earlier this week, Moore spoke at a private IAP Global seminar at Windsor Racecourse attended by some 60 investors, where he admitted his former ventures did "not do well". IAP collapsed in September owing more than £11m. Creditors included law firms Schillings (£60,000) and Mishcon de Reya (£25,000). It is owed £8m by ITS, which itself went bust in April.

One-time pyramid perfume seller Moore - his L'Arome scent firm went bust in the early 90s - is offering investors deals including 100% flat finance packages in Brazil and guaranteed 14% returns from holiday flats in Yorkshire.

The arrangements between IAP and Engle Properties, along with huge dividends shareholders took out of IAP and Moore's ability to pay his former wife Kim a £16m divorce settlement, have caused concern to former IAP investors who are now creditors.

Many bought off-plan - paying a deposit years before the building was due to be completed - and have yet to see either the return of their deposit or a flat that can be rented.

One "gold level" member (who did not wish to be named) told Guardian Money that he paid a £1,000 deposit to a developer and a £5,875 "finder's fee" to IAP, controlled by Moore via a Panamanian foundation, in January 2007.

"The project ran into the ground some months later when it was discovered the land was contaminated. I was not impressed with this IAP recommendation, but anyone can make a mistake. When I eventually asked for my money back, the developer sent my £1,000. I have had nothing from IAP - Moore tells me there is nothing he can do as the firm is in liquidation. He says I can have a credit against a new purchase but I want my money. In any case, it's hard to know what's good value," he says.

Tamsin Barks, the Sussex buy-to-let investor who claims to be several hundred thousand pounds worse-off after an involvement with Instant Access, says she is still waiting for the "help" she was promised early this year. "The advice I got from Instant Access [the bust IAP] included an overcharging US mortgage broker and an appalling Florida management company. Now it's bust, I'm not going to get anything back and I'm in financial trouble," she says.

IAP creditors must now wait until January to see the results of the investigation into the Engle deal.

Liquidator Chantrey Vellacott says: "Engle, a company controlled by Moore, contracted to pay £999,999 in a series of deals with IAP. But no cash has been collected from Engle by IAP. Engle has also taken from IAP an assignment of agency agreements on overseas properties amounting to a maximum $16.5m (£11.5m).

"The circumstances surrounding these agreements will clearly need to be investigated by the liquidator."

Source: ' Guardian '

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