Police probe £30m property development

Police have launched a major investigation into a £30m property development in the centre of Manchester.

Greater Manchester Police is probing the activities of Pinnacle Alliance, the company behind the Angelgate scheme into which investors have paid up to £350,000 to secure a plot.

Not a brick has been laid on the site since the scheme was launched two years ago, although it was due for completion two months ago.

The investigation was launched following complaints from about 70 investors to Action Fraud, the national fraud and cyber crime reporting centre.

Also linked to the investigation is charity firm fraudster Tony Freeman, who worked for Pinnacle as a consultant.

In 2006, Freeman was jailed for 18 months at the High Court in Glasgow for defrauding his own fundraising firm of £450,000 days before it went bust.

Freeman, 50, is a former professional fundraiser whose Glasgow-based company Solutions RMC raked in millions from breast cancer charities by charging huge commissions.

His firm raised £13m for two charities over seven years – but only £1.5 went to the groups. He also paid himself £170,000 a year and ¬collected £8m in commissions.

After his release from prison in 2007, Freeman set up in business in the Manchester area.

The Daily Record said investigators were also alerted by former sales director Julie Harvey, 57, who was responsible for Angelgate sales in Hong Kong and Singapore – a role she has claimed Freeman hired her to perform in 2014.

Harvey has said that of the £30m raised through sales of flats, less than £2.5m was left in the company accounts.

It is claimed more than £13.2m went to commissions and fees, with £7.9m spent on overheads and running costs.

She has also claimed she’s owed £250,000 in unpaid commission.

Harvey said: “I discovered Tony Freeman’s chequered past years after I met him. He explained away the jail term as a tax evasion issue.

“It seemed very plausible at the time.

“Tony wanted me to be the face of Pinnacle going out to Asia.

“He said, ‘Julie, your job is to sell’.”

Harvey told the Scottish newspaper she became worried last year when no flats had been built. She quit in August.

She added: “Investors were concerned because they couldn’t see any work on site. In early 2016, it became evident that the monies weren’t there.

“I asked Tony where the money was but no one would tell me. I found out last April there was only £2.5million in the account.”

Although he is not listed as a director, Harvey has claimed Freeman ran Pinnacle and also appeared at Far East sales events, set up to to promote Angelgate and other projects.

Harvey has notified Companies House, the Bank of China and police in Hong Kong over Freeman’s links to Pinnacle Alliance and Angelgate.

She added: “Some investors blame me. They think I’ve run off with the money.”

Police have confirmed they were investigating. A spokeswoman said: “Greater Manchester Police have received around 70 complaints surrounding a property investment in Manchester city centre.

“These complaints have been recorded as fraudulent offences and are currently being reviewed and assessed by specialist officers.”

The newspaper said Pinnacle attributed delays at Angelgate to the construction company going into administration.

A spokeswoman added: “Pinnacle has now reached an agreement with a reputable building constructor who has said they’re willing to take on the build at no extra cost to buyers. Buyers will get the flats they bought for the price that they agreed. There have been no profits for Pinnacle, quite the opposite.

“All of the commissions received were spent on sales agents, marketing the apartments, wages and business running costs.

“Pinnacle will have all the funds required.

“Pinnacle has received no contact from police or Action Fraud UK, however the company would be happy to cooperate.”

TheBusinessDesk has contacted Pinnacle Alliance for comment.