Investigators in the United Kingdom may mount a probe into a possible investment fraud which ensnared individuals from China, Hong Kong and Macau, after it emerged that several planned developments in the north west English city of Liverpool have stalled.
The news was first reported by the UK’s Liverpool Echo, which wrote that the English region’s “organized crime-fighting squad” is looking into the details of failed schemes that cost China-based investors around 90 million pounds (MOP973 million).
According to the Echo, a series of administrative setbacks has effectively halted development on several projects, including a city center site known as New Chinatown.
James To, a member of Hong Kong’s legislature, said as many as 700 investors from the greater China region may have been ensnared in the suspected fraud. According to To, the investors have reported the incident to authorities in both the UK and Hong Kong.
Meanwhile, the authorities in neighboring Hong Kong have reportedly released official guidance for investors.
Some of the properties in question can be traced back to two parent companies – North Point Global and Pinnacle Alliance.
A spokesperson for North Point Global told the Echo that “the monies paid by buyers have been utilized on each project in accordance with the legal parameters under which it was received. […] This included site acquisition, planning fees, legal costs, taxation, professional fees, construction costs and developer fees.”
Liverpool has been a target for UK-based and overseas development for several years now. According to the city’s mayor, 2018 is expected to mark the fifth consecutive year that the city has welcomed more than 1 billion pounds (MOP10.8 billion) in investment. Last month, some 1.7 billion pounds worth of construction projects were ongoing in the city.
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