Property fraudster jailed for £113,000 investment scam
A Welsh property fraudster has been sentenced to four-and-a-half years in prison after deceiving 15 investors out of more than £113,000 through a sophisticated property sourcing scheme that relied on forged documents and false tenancy agreements. Jason Cunningham, 39, of Cardigan, was convicted at Reading Crown Court following a ten-week trial this summer, shining light on continuing vulnerabilities in the UK's property investment market.
The case highlights how unregulated 'property sourcing' operations can exploit gaps in consumer protection, leaving victims with little recourse when deals collapse and operators refuse to return non-refundable fees.
Background and Context
Property sourcing, where companies identify and secure properties on behalf of investors for a fee, operates in a largely unregulated space between estate agency and financial advice. The industry has come under increasing scrutiny as fraud cases have emerged across the UK. According to National Trading Standards, such schemes often promise guaranteed returns or below-market-value deals that fail to materialise.
Cunningham's operation was run from a residential property on Craven Road, Newbury, Berkshire, where he managed multiple property businesses without proper oversight. The BBC investigation revealed how he used the apparent legitimacy of multiple registered companies to create an illusion of a substantial property portfolio.
Key Figures and Entities
Jason Cunningham operated through several property businesses, though specific company names were not detailed in court records. His criminal history includes a previous conviction for unfair trading in 2015, according to West Berkshire Council records, suggesting a pattern of deceptive practices targeting property investors.
Ian Wright, Operations Manager for the National Trading Standards Tri Regional Investigation Team, led the probe and described Cunningham's motives as driven by "profit and greed." The investigation involved collaboration with West Berkshire Council's trading standards team, highlighting how local authorities often lead complex fraud investigations that cross jurisdictional boundaries.
Legal and Financial Mechanisms
Cunningham was found guilty of two counts of fraudulent trading under the Companies Act 2006 and five counts of using a false instrument, relating to forged documents and fabricated tenancy agreements. These charges reflect how fraudsters in the property sector often create elaborate paper trails to convince investors of legitimate deals.
The non-refundable fees structure, typically ranging from £2,000 to £10,000 per property, created immediate financial gain for Cunningham regardless of whether deals completed. Court documents showed how WhatsApp messages were manipulated to create false evidence of ongoing negotiations and landlord agreements, demonstrating the sophisticated methods now employed in property fraud.
International Implications and Policy Response
While this case operated within England and Wales, it reflects broader challenges in property investment regulation across jurisdictions. The UK's property agent regulation framework remains fragmented, with different rules applying to estate agents, letting agents, and property sourcers.
Tom McCann, Executive Member for Public Safety at West Berkshire Council, emphasized that Cunningham's victims "suffered significant financial harm and stress," calling attention to the personal impact beyond monetary losses. The case may inform ongoing discussions about whether property sourcing should fall under the Financial Conduct Authority's regulatory remit, particularly when schemes promise investment returns.
Sources
This report draws on court records from Reading Crown Court, reporting by BBC News, and official statements from National Trading Standards and West Berkshire Council. Information about Cunningham's previous conviction comes from council records, while legal context is referenced from UK legislation and regulatory guidance.
