An agent was used as a vehicle for fraud, leading to tenants and landlords losing thousands of pounds.

Three people sentenced in connection with the case, involving Oliver Knights, in London, have all escaped jail.

The sentences follow an investigation spearheaded by the National Trading Standards eCrime Team, which found that Oliver Knights –described as an online lettings business – was being used as a vehicle for fraud that led to a financial loss of at least £50,000 for tenants and landlords.

All three defendants pleaded guilty to money laundering.

They had knowingly allowed their bank accounts to be used to launder the proceeds of lettings frauds between December 31, 2013, and September 4, 2015.

These proceeds specifically relate to rental payments received for properties that were never available to rent, said National Trading Standards.

The final sentences handed down at Snaresbrook Crown Court were as follows:

• Adnan Iqbal, 34, from Barking, sentenced to ten months, suspended for 18 months on 21 September 2019
• Shaidul Islam, 29, from Ilford, sentenced to one year, suspended for 18 months
• Kamran Malik, 31, from Plaistow, sentenced to one year, suspended for 18 months.

Islam and Malik were also ordered to pay compensation orders totalling more than £15,000, which is being redistributed to victims. All three were also ordered to do 120 hours unpaid community work each.

The investigation was prompted by more than 40 complaints to Action Fraud and Citizens Advice about Oliver Knights.

The probe exposed how the business was used as a vehicle for fraud, causing financial loss, distress and significant inconvenience (such as leaving people without a home) for prospective tenants and landlords.

Trading Standards has stressed that is not suggested that the defendants were involved in the underlying frauds.

In a briefing it said that Oliver Knights had advertised properties to let on Rightmove, Zoopla, Gumtree and their own site to attract interest from potential tenants.

After initial dialogue and viewings, consumers paid deposits and rent in advance, only to be told that the property was no longer available, or to hear nothing more from Oliver Knights representative.

According to National Trading Standards, some of the properties offered for rent had never been available and had been falsely advertised without the consent of the owners.

In other instances, consumers paid deposits and rent and moved into the property before discovering that the transaction had been completed without the landlord’s knowledge and/or without the necessary payments being passed on to the landlord by Oliver Knights.

This left some renters without a home and caused financial loss to landlords.

Lord Toby Harris, chair of National Trading Standards, said: “The defendants knowingly allowed fraudulent payments to be made into bank accounts and – while not being the architects of the fraud – have benefited financially from fraudulent activity.

“We are determined to clamp down on those who benefit from the financial exploitation of others and I am grateful to our investigators for their determination to secure justice and compensation for the victims, who have been left out of pocket and, in some cases, emotionally scarred.”

The charges brought against the three individuals were of money laundering, contrary to Section 327 of the Proceeds of Crime Act 2002.

While sales agents have to register for AML purposes with HMRC, letting agents do not.

Other firms with similar names are nothing to do with this case.