Outline

Operating as Gresham Ltd and Gresham Finance (London) Ltd (see note 1) the company offered commercial loans of up to £250 million. It promoted its services by advertising in newspapers, magazines and on the internet. Applicants for loans were charged between five and fifty thousand pounds for a due diligence check.  Most of the applications came from overseas for commercial projects such as developing resorts and building hotels (in Austria, Turkey and other countries).

Once an applicant had paid the due diligence fee there was a next-stage payment (a security deposit) set at between 1% and 5% of the loan amount. Various other company names were also used to offer a similar service.

The same suspects were also involved in a retail property renting business operating as Gresham Ltd, Park Regent Ltd and Castlereagh London Ltd (see note 2). The suspects used a complex number of company names in their business dealings, including the following: 45 Oxford St Ltd, Renaissance Trust, Cutting and Company (Investments) Limited, Paul Street Media Limited and the Alliance Trust (see note 3).

Searches and arrests

Search warrants were executed at eighteen addresses in London, Surrey, Cheshire and Derbyshire in a mixture of commercial and residential properties. The searches involved 70 personnel from the SFO and 40 officers provided by the City of London Police, the Derbyshire Constabulary and the Cheshire Police.

Five men and one woman have been arrested and three will appear in court later today at City of London Magistrates Court.

The SFO are continuing enquiries into this case.

SFO Appeal

The SFO would like to hear from anyone who believes that they might have information useful to the investigation. The number to call is 0207 239 7079

Notes for editors:

1.     Gresham Finance (London) Ltd is not to be confused with Gresham Finance Ltd, which is an unconnected company and not under investigation.

2.     Castlereagh London Ltd is not to be confused with Castlereagh Ltd of Dublin, which is an unconnected company and not under investigation.

3.      Alliance Trust is not to be confused with the Alliance Trust PLC, the FTSE 100 investment trust, which is an unconnected company and not under investigation.

Serious Fraud Office, Elm House, 10-16 Elm Street, London, WC1X 0BJ

Press Office tel: 020 7239 7045/7000/7004/7132 or mobile: 0796 655 8903 or 0777 616 0985

Main switchboard tel: 020 7239 7272

press.office@sfo.gsi.gov.uk – or via – www.sfo.gov.uk

The email from Clive Wilson, sales director of Beacon Homeloans, stated that the lender’s current funding line will end in February 2010.
As a result, Beacon has to find new funding arrangements.

Content of email included:

“Beacon Homeloans, currently one of the top 20 lenders in the UK, is seeking additional finance to facilitate further strong lending in 2010.

The current mortgage asset purchase arrangements, which have enabled Beacon to lend circa £2bn since its inception in 2005, will come to a natural conclusion at the end of February 2010.

Between now and February 2010, in close liaison with the FSA, Beacon will be carefully managing the conclusion of its asset purchase arrangements, and to assist customers to whom mortgage offers have been made in completing their loans within the stated validity of their individual mortgage offer.”

To ensure this was achieved, and in line with regulatory requirements, all fully packaged applications on the current Beacon product range, ready for first time offer and within the packagers monthly quota, would need to be with Beacon by close of business on Friday 13th November.

“No new mortgage offers will be issued by Beacon after close of business on Friday 27 November”.

Editors Note:
Beacon Homeloans is a residential mortgage lender authorised and regulated by the Financial Services Authority under number 429220.

Products are available via professional mortgage intermediaries only and are not available direct to the public.

Contact information:

Beacon Homeloans Limited
One Globeside
Fieldhouse Lane
Marlow
Buckinghamshire
SL7 1HZ

	Underwriting	Completions	General Enquiries
Tel.:	0870 979 6633	0870 979 6600	0870 979 9933
Fax.:	0870 979 6644	0870 979 6611	0870 979 9977

enquiries@beaconhomeloans.co.uk