Fraudster Jailed for Scamming Investors Through Dodgy Property Sourcing Deals

Summary: Jason Cunningham has been sentenced to four-and-a-half years in prison after defrauding over a dozen property investors out of at least £113,000 through dishonest property sourcing schemes. This case highlights the risks landlords and investors face when dealing with unscrupulous deal sourcers in the rent-to-rent and buy-to-let sectors.

Background of the Case

Jason Cunningham, a 39-year-old from Cardiff, operated a property business based in Reading. He specialised in offering investors access to rent-to-rent deals, a strategy where a landlord receives a guaranteed income while the investor rents out the property—often as a House in Multiple Occupation (HMO)—and retains the difference between the rent paid to the landlord and the rent charged to tenants.

While rent-to-rent arrangements are legal when conducted properly, Cunningham was found guilty of exploiting this model to defraud investors. He charged 15 individuals non-refundable fees to source property deals, but when these deals failed to materialise, he refused to return the fees.

Legal Proceedings and Conviction

The trial took place over ten weeks at Reading Crown Court during the summer. Cunningham faced 21 indictments, including charges of trading fraudulently, forgery, counterfeiting, and two counts of fraud. He was convicted on seven counts, including five related to fraudulent trading, forgery, and the main fraud charges. The companies involved in the fraudulent activities were Source Investment and Property Finders UK.

He was acquitted of one fraud charge, and the jury was unable to reach verdicts on four other indictments. Three co-defendants were found not guilty.

Investigation and Impact on Victims

The investigation was conducted by West Berkshire Council and Bracknell Forest Council. Both authorities reported that the victims suffered significant financial loss and emotional distress as a result of Cunningham’s fraudulent activities.

Evidence presented during the trial included corroborative material from Property Redress, which supported the claims made by the victims.

Implications for Landlords and Investors

This case serves as a cautionary tale for landlords and property investors engaging with deal sourcers, especially in the rent-to-rent and buy-to-let markets. The property sourcing sector has faced scrutiny due to the prevalence of dishonest operators, prompting recent initiatives aimed at cleaning up the industry and improving transparency and accountability.

Landlords should conduct thorough due diligence when working with sourcing agents or companies, verifying credentials and seeking references where possible. Investors should be wary of non-refundable fees and ensure that all agreements are clearly documented and legally sound.

For those interested in the wider context of rent-to-rent and property sourcing, the sector is undergoing regulatory changes and increased oversight to protect landlords and tenants alike.

Conclusion

Jason Cunningham’s conviction and sentencing underscore the importance of vigilance in property investment and sourcing. As the property sourcing sector continues to evolve, landlords and investors must remain informed and cautious to avoid falling victim to similar scams.

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Fraudster Jailed for Scamming Investors in Dodgy Property Sourcing Deals

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Jason Cunningham sentenced to four-and-a-half years for defrauding investors out of £113,000 through fraudulent rent-to-rent property sourcing schemes. Learn how landlords can protect themselves.