Rogue letting agents who conned foreign workers and students in east London have been convicted following a six month trial.
Five people have been convicted of 15 housing related offences after an investigation by Tower Hamlets council.
Southwark Crown Court heard Mohammed Moynul Haque, his then wife Fatima Begum, Gonzalo Gomez Egea, Razaur Rahman Oli and Nozir Ahmed were involved in “numerous illegal and unfair letting practices”.
These included the “bait and switch” advertising of rooms, placing misleading adverts on online platforms such as Spareroom, and failing to protect or refund tenants’ deposits.
In some cases renters were denied their legal rights to protection from eviction without a court order.
The group listed properties in east London under a number of company names, including Citiside Properties, Barrons London Limited, Roomshare Ltd, Redbricks Estate Agents Ltd and Flintons.
For years when one business received a flurry of complaints, it would be closed down and another set up in its place with a new name.
Tower Hamlets council began investigating in 2017 and noticed the offending companies mainly operated from the same location - 220 Bow Common Lane.
The town hall said the letting agents particularly targeted foreign workers and students who were new to the UK and unfamiliar with the city’s rental market.
Following a years-long investigation, the trial began on April 8 and was supported by the National Trading Standards Tri Region Investigations Team. Around 40 complainants provided evidence.
Mohammed Moynul Haque operated several of the companies that were accused of fraudulent home letting. He was found guilty of four counts of fraudulent trading and two breaches of the Consumer Protection from Unfair Trading Regulations 2008.
Evidence showed substantial sums of money moving between Haque's personal accounts and other companies which he ran or had an interest in.
Fatima Begum, was convicted of one offence of fraudulent trading. Begum, was the director of Citiside Properties Ltd and managed both Redbricks Estate Agents Ltd and Flintons.
Gonzalo Gomez Egea, who was a manager of two of the businesses, was found guilty of two counts of fraudulent trading.
Razaur Rahman Oli, who ran Barrons London Ltd, were was convicted of fraudulent trading and an offence under the Consumer Protection from Unfair Trading Regulations 2008.
Nozir Ahmed and his company, Roomshare Ltd, were convicted of two offences under the Consumer Protection from Unfair Trading Regulations 2008.
They are due to be sentenced on December 5 and 6.
Ivann Schlosser, a complainant in the case, said: “Hopefully this case will help improve the letting conditions for this segment of the market, where many vulnerable and young people find themselves coming to East London for studies, work and fun.”
Mayor of Tower Hamlets, Lutfur Rahman, said: “This verdict sends a clear message to rogue letting agents and landlords that we will not tolerate businesses putting residents at risk and flouting the laws. Letting agents and landlords have responsibilities to ensure the properties they rent are accurately advertised and follow all relevant laws. If they do not, the council will do whatever it takes to bring them to justice."
Matt Hutchinson, Communications Director at Spareroom, said: "The rental market has always had issues with rogue landlords, and worse. As the housing crisis deepens, it’s become even more of a problem, so it’s really important to see people being charged and convicted for these offences."
