A developer has been taken to court by the National Crime Agency (NCA) after investors’ funds were used for a housing development where the units were not built.

The NCA have taken South Shields-born, Gary John Robb, 52, to court in order to recover finance from a fund. Since an initial ruling 71 claimants have stepped forward who believe they are entitled to part of the Fund which was obtained via unlawful conduct. (3)As of November last year, the Fund in question stood at just over £1.4 million.  

Mr Robb worked as a builder turned developer on small scale projects and in February 1999 he formed Aga Developments Ltd (AGA) and started on two large scale ‘ambitious’ projects.

The smaller of the two programmes was to create 65 properties, while the larger was to initially see the build of 250 properties. Marketing for these began in 2003 and 2004 respectively.

Buyers were mainly from the UK. They purchased off-plan, paid a deposit and thereafter agreed to make stage payments as construction works progressed.

The majority of the units in the first project were built but attracted a high volume of complaints as to the conduct of Mr Robb and AGA’s in line with contractual obligations.

Only one house was built on the second, larger project, due to an investor taking over the construction process himself.
The court heard that in October 2004, Mr Robb transferred around £1.8 million from Mr Robb/AGA’s Account 2 to a personal account referred to as Mr Robb’s Account 1. Other transfers were made byy Mr Robb soon after.

Investor dissatisfaction started to arise from spring 2005 and legal proceedings commenced later in regards to the money.

In 2012, Mr Justice Mackay concluded that the Fund then standing to the credit of Robb’s Natwest account was, subject to any claims by third parties as it was deemed as recoverable property.

In his findings in regards to the lead claimaints, the current justice, Sir Terence Etherton, stated: “Although Mr
Nicholas Cox, counsel for the NCA, highlighted several possible difficulties with such a claim, he did not at the end of the day firmly oppose it.”

After coming to a conclusion that there were two possible routes for the claimants to establish a proprietary claim, Judge Etherton said: “So far as concerns section 281(3)(c), each lead claimant can establish a present and subsisting proprietary interest in part of the Fund.”

It was also questioned whether the lead claimants were owed any of the interest which had mounted up on the Fund from the point it had been frozen to the time claimants revoked their transactions. The judge confirmed: “For the reasons I have already given I do not see that this is a problem.”

It was concluded that the determination of any application made by the lead claimants regarding the trial costs, was to be adjourned.

It was added that the NCA's costs and Mr Robbs should be payable out of recoverable property.  
The National Crime Agency is a UK-wide organisation devoted to prosecuting individuals suspected of serious and organised crime.