Property convict sees sentence double

A convicted property professional has seen his sentence increase twofold...

Yesterday, Teesside Magistrates’ Court ordered that a John Potts, 66, of Sunderland, Chairman and founder of Practical Property Portfolios Ltd (PPP) should serve an additional term of six years imprisonment for failure to pay a confiscation order and will now serve 11 years in total. 

Potts defrauded investors of Practical Property Portfolios Ltd of around £80 million between 2001 and 2003. 

Mr Potts was one of the founders of PPP, a group of investment companies which sold approximately 4000 residential properties to at least 1,750 investors, who were asked to pay a package price for a house that would be refurbished for a total of £25,000.

However PPP was wound up by the DTI in 2003 after the prosecution alleged that the defendants involved had misled investors in “almost every material respect”.

In 2009, Mr Potts was finally sentenced to five years imprisonment.

In September 2010, Mr Potts had a £1.5 million confiscation order made against him and was told that he could risk facing a further six years behind bars if he did not fork out the money within two years.

That default sentence was activated yesterday by two magistrates sitting at Teesside Magistrates’ Court and will be served unless the confiscation order, along with the accrued interest, is paid in full.

Elizabeth Baker, Serious Fraud Office Joint Deputy Head of the Proceeds of Crime Division, reiterated that they are committed to ensuring criminals surrender the benefits of their crimes.

"This was a pernicious fraud, with large amounts of money paid over in good faith by investors,” she said.

Mrs Baker added: “As a result John Potts enjoyed an extravagant lifestyle, using other people’s money to pay for home improvements and purchase race horses and expensive cars.”

The outstanding balance of the confiscation order totals at £1,365,427.49 which is accruing interest at a staggering £251.66 per day. Mr Potts has paid, in total, £315,794.15 towards the original confiscation order.