South

Jim Moore helped fuel the property boom through his companies Inside Track and Instant Access Properties (IAP).

Inside Track went into administration in April 2008 and IAP followed suit in September. Both companies owe millions of pounds to creditors.

Mr Moore blames the property slump and the credit crunch, but now his new business, IAP Global, is trying to persuade more people to become landlords.

Property club

Since 2003, thousands of people have attended expensive property seminars run by Mr Moore.

Some then paid a further £6,000 to join his property club, IAP.

Members were supposed to get expert advice and the opportunity to buy properties at special discounted prices.

But many have lost their life savings after buying flats recommended by Mr Moore’s companies.

They say they were misled about the value of the properties and the rents they could expect to receive.

Tony Jefferson: estimated losses of £225,000

Unhappy customers

Tony Jefferson, from Lower Heyford, near Bicester, bought three flats in 2004 because he was told he was getting a 15% discount on the true market price.

But even though property prices rose for the next three years, he says the flats were never worth what he paid for them:

"We should have had an increase in the value of the properties. We never have.

"None of the three properties have ever been anywhere near the supposed market value at the time that we bought them."

Tony says he thought it would be a safe investment for his retirement as he was told that the rents would cover his costs.

But he has never got the expected rents, so he now has to find more than £1000 a month to subsidise the flats.

Instead of retiring, he has to work full-time just to avoid bankruptcy:

"At the moment, we dread the post, we dread emails, we dread the phone ringing, because its almost always bad news.

"We dread practically everything.

"The fact is we have absolutely nothing good to look forward to."

Tony estimates his losses at £225,000 and he is far from alone.

Inside Out has spoken to many investors who have lost similar amounts.

Some don’t want to be identified because they still haven’t told their families.

Jim Moore's response

Jim Moore says his companies always based their projected rents and property prices on independent valuations:

"IAP made it clear to members that there may be periods when properties are vacant or rents fall below expectations.

"IAP endeavoured to provide a realistic market price at the time of sale and could not be held responsible for the economic downturn of the past 18 months."

Administration

In September 2008, IAP went into administration owing £11m.

Kevin Murphy: investigating payments

The administrator, Kevin Murphy, says he will be investigating payments made to Mr Moore as the main shareholder.

"In the four years up to 2007 the company was very profitable and paid substantial dividends to its shareholders.

"Something like £23 million was paid in that period.

"One of the issues to investigate is whether those dividends were properly paid.

"It has been flagged and it will be investigated."

Mr Murphy has also raised concerns about the way that expected payments from developers have been handled.

Engle Properties

IAP was due to get £15 million in commission when its overseas property sales were completed.

But a few months before IAP went into administration, these potential commissions were sold cheaply to another of Mr Moore’s companies.

Any commission that comes from the overseas developers will now go to Engle Properties rather than the creditors.

Although Mr Moore owned IAP, he says he cannot be held responsible for its actions because he was not a director. He says:

"IAP advocated that the most attractive returns were to be made through long term property investments.

"Members were well educated, mostly professional individuals who, at the time of the purchase were aware of the investment risks."