A crooked landlord who exploited a Scottish Government scheme designed for first-time buyers to purchase a £140,000 house in Perth has been ordered to complete unpaid work.
Raza Hussain used fake bank statements and lied about his employment to secure funding from the government’s LIFT initiative.
The scheme was set up to help first-time buyers get on the property ladder.
But 31-year-old Hussain already owned a house in Aberdeen when he applied for funding.
He further duped the Nationwide Building Society into giving him a mortgage.
A criminal investigation later uncovered the father-of-two had not moved into the property at Glengarry Road but was instead renting it out to someone else.
Hussain, from Perth, previously pled guilty to running a fraudulent scheme between July 1 and September 26 2019.
He returned to the dock this week and was sentenced to unpaid work.
Couldn’t verify his employment
Prosecutor Emma Farmer told Perth Sheriff Court: “The Lift scheme is a low-cost initiative to help first time buyers get onto the property ladder.
“Shared equity owners are not permitted to let out their property under any circumstances.”
She said Hussain’s application was assessed by a Scottish Government agent and approved on July 25 2019.
“He stated on the form that he was a first-time buyer,” said Ms Farmer.
“But this appears not to be true as he had previously bought a property in Aberdeen.”
Hussain secured £48,300 of government funding for the three-bedroom home in Perth’s Glengarry Road.
He later secured a £82,800 mortgage from the Nationwide Building Society, and bought the property with a £6,900 deposit from his parents.
Ms Farmer said attempts were made by the Nationwide’s financial crime department to contact Hussain’s employer.
“This was to verify his employment,” she said. “However, this was unsuccessful.”
His application was put on hold and payslips were requested to show his income.
However, the funding for the mortgage had already been released and could not be recalled.
Proceeds of crime
The fiscal depute said: “During 2020, a member of the Scottish Government was contacted by police in relation to an investigation into Mr Hussain, regarding concerns about his banking activity.
“It transpired he was on the landlord register and was renting out the property.”
When quizzed about this Hussain said he had served notice on the tenant and that he would move in after they had moved out but he was unable to provide any proof of this.
Hussain also produced bank statements to government officials, showing monthly salary payments of £1,992 from a company in Paisley.
“It later transpired that the true bank statements did not disclose this income,” said Ms Farmer.
“He declared an income of £30,000 per annum but could provide no evidence of this.”
The court heard Hussain now faces Proceeds of Crime action, although this has been put on hold until later in the year to give Police Scotland’s financial investigations unit time to complete their probe.
Alternative to prison
A lawyer for Hussain said: “He fully accepts what he did and faces up to his responsibilities.”
Sheriff David Hall told Hussain: “Clearly this is a serious matter.
“You were fully aware that what you were doing was fraudulent, due to the fact that you had already purchased a property and were not a first-time buyer.”
He added: “You have no criminal convictions and this offence is quite old, so I can deal with it today in a way that allows you to remain at liberty.”
Hussain, of Fairies Road, Perth, was sentenced to carry out 235 hours of unpaid work as a direct alternative to custody.
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