BTL Fraudster Sentenced to 5 Years in Jail

One of the largest UK buy to let fraudsters was sentenced to 5 years in prison for having defrauded investors of an average of £80 million. John Potts, 60 years old, has defrauded 1,750 investors of approximately £25,000 each. Practical Property Portfolio, Pott’s company, offered investors “untraditional” schemes of investment, which were supposed to attain incredible yields of almost 15% per annum. The scheme involved buying properties in poor condition and/or in problematic neighborhoods, which were to be refurbished and renovated later. After the renovation process, the properties were expected to be let to reliable tenants. Pott’s company did indeed buy almost 4,000 houses and flats, but they never were refurbished or renovated as promised. The money earned in this fraud way were spent by John Potts on purchase of jewelry, art collections, and other expensive items. Four other members of Practical Property Portfolio were also found guilty and were sentenced to 2-3 years in jail. Many victims of the Pott’s scheme lost their lifetime savings, with one of the losing a total of £500,000.