Case study 48 Trent Road was converted to four flats by its owners, Mr Jerry Knight and Lexadon Ltd. Because three planning applications had been refused for such use and the owners had failed to resolve the matter informally with the Council’s Planning Enforcement team, planning enforcement notices were served requiring the cessation of the unauthorised use of the property as flats.
The owners failed to comply with the requirements of the planning enforcement notice within the prescribed periods and as a result, prosecution proceedings were instigated against the owners. In addition, planning enforcement officers and planning lawyers worked with the Counter Fraud Team’s accredited financial investigator (AFI) to pursue a Proceeds of Crime Act (POCA) application in respect of the profits made through this unlawful activity. Our AFI has specific powers under the POCA legislation to acquire financial information on defendants from banks and other institutions.
A confiscation order hearing took place at Inner London Crown Court on 8 September after the owners had admitted failing to comply with the planning enforcement notice. The financial investigation established that the defendants had derived benefit totalling £143,000 from the rental income received in respect of the property since the expiration of the enforcement notice period.
The court ordered that all unlawful profits made from the venture be repaid to the public Page 276 purse, applying a confiscation order for the full amount of £143,000, of which £53,000 was awarded directly to the Council to be used to fund further enforcement and investigation activity. The judge commented that these offences were particularly flagrant and that the owners had deliberately flouted the regulations.
As a result fines totalling £26,000 were also handed down with the defendants also ordered to pay Council costs of £7,000.
http://moderngov.lambeth.gov.uk/doc...5-Sep-2014 19.00 Corporate Committee.pdf?T=10