Solicitor is arrested in mortgage fraud probe

Nov 6 2009 by Sophie Doughty, The Journal

Yesterday’s arrests bring the total number of people arrested in connection with the investigation to 13.

The Journal understands these include Grace Purdie and David Purdie, of Darras Hall, Northumberland, who are directors of one of the companies, Grace Purdie’s business partner, Michael Foster, of Houghton-le-Spring, and several employees who worked for the companies at managerial level.

All have now been questioned and released on bail. And detectives have warned that nobody suspected of playing a role in the alleged fraud will escape arrest.

Det Chief Insp Jim McAll from the Economic Crime Unit said: “A complex mortgage fraud can not be perpetrated without the assistance of professionals such as solicitors and surveyors.

“Often these professionals will be acting in good faith, but if we get evidence to suggest that they are complicit then we will treat them as criminals in their own right.

“This investigation focuses on an organised crime group who have allegedly fraudulently obtained some 2,000 mortgages from various lenders and we believe that several local solicitors and surveyors have been involved.

“As a result of enquiries, one solicitor has been arrested and interviewed in connection with this matter. It is inevitable that further arrests will follow as this investigation continues.

“Mortgage fraud is not a victimless crime – innocent people could lose their homes.”

Hundreds of North East Property Buyers tenants are still waiting to discover if they will lose their homes. A judge at Newcastle County Court is expected to hear test cases next year before reaching a decision on future evictions.