Estate agent and solicitor couple in ‘spectacular’ fraud

An estate agent and her solicitor husband together defrauded clients for their own financial gain.

Kelly Lyons, who ran Orchards Property Services in Herne Bay, Kent, and her 48-year-old solicitor husband Michael, who operated his business from the same building, each pleaded guilty to what the judge described as a “spectacular” fraud at Maidstone Crown Court.

Kelly Lyons admitted two counts of fraud, five of forgery, and one of evading VAT.

Michael Lyons admitted three counts of fraud. Sentencing is expected shortly.

In one fraud, the couple claimed a house in Whitstable sold for £115,000, when the amount was £125,000 – and pocketed the £10,000 difference.

They also gained £4,000 for themselves after a deception regarding the sale of property in Sturry, Canterbury.

Michael Lyons was a conveyancing solicitor who worked for the vendor, buyer or both, while his wife, 45, valued and purported to market the properties, prosecutor Don Ramble said.

Kelly Lyons was also employed as a conveyancing executive and completions clerk by her husband, despite not being licensed in conveyancing.

In one case, www.kentonline.co.uk reported how, in March 2012, Dr David Farrall contacted Lyons Solicitors about selling a house in Whitstable.

Michael Lyons suggested his wife should market the property.

Kelly Lyons valued it at £115,000 but recommended putting on the market for £125,000.

In May, she told Dr Farrell an offer of £110,000 had been made, but the actual figure was £125,000.

She later told him the offer had been increased to £115,000.

“As a result of this information, David Farrell formally accepted this purported offer of £115,000, not knowing the true offer was, in fact, £125,000,” Ramble told Maidstone Crown Court.

Ramble explained that at no time was the vendor or the purchaser informed that Michael Lyons was acting for both parties, in what he described as a “clear conflict of interest”.

The fraud was discovered after an uncle of the buyer looked at website nethouseprices.com and found that the purchase price was actually £115,000.

In a separate case, a house in Herne Bay was marketed in June 2012 at £145,000 but was sold in November that year to Robert and Judy Saunders — Kelly Lyons’ parents — for £95,000.

It was put back on the market in January 2013 for £175,000, marketed by Orchards Property Services but failed to sell and was withdrawn from the market.

In February 2014, it was transferred to Michael and Kelly Lyons for “no monetary value”. In the summer of 2015, the house was sold for £230,000.

The final fraud involved a house in Deansway Avenue in Sturry, which was valued at £130,000 to £135,000, and to be sold to pay for the owner’s care home fees.

The owner’s nephew and niece were granted power of attorney and dealt with the sale. They were told the property sold for £132,000.

However, they later discovered the person they were told had bought it was not the owner.

It then emerged that another buyer had paid £136,000 for the house.

Kelly Lyons explained away the £4,000 discrepancy as an “administration mistake”.

Meanwhile, Ramble said Kelly Lyons also charged £6,000 VAT in respect of 30 properties when she was not registered with HMRC.

Lyons, who kept the money, used the VAT number for her husband’s practice.

Defending Michael Lyons, Georgina Gibbs told the court the family had been under “severe financial difficulties”.

He faces prison but Gibbs asked for a suspended sentence.

Lesley Manley said her client, Kelly Lyons, wanted to apologise for the upset and distress she had caused.

Manley said: “Were it not for her marital situation it is very unlikely she would have acted in this way.”

A proceeds of crime hearing for the couple, now living in New Milton, Hampshire, with their children, aged ten and nine, will be held on June 15.

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2 Comments

  1. Bless You

    It’s a pity the asa weren’t judging. They would have been able to fix the mistake internally  and then carry on as normal.

    Good job they didn’t make millions from decepting the public eh dompratchett

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  2. Trevor Mealham

    Many main UK banks are doing this daily to SMEs. They orchestrate collapse after securing a charge on the title or PG.

    Banks normally ‘SECURITISE’ the ‘PROMISSORY NOTE’ known to most as the loan or mortgage agreement.

    A charge is placed at land registry by the originator bank. But on replacing their own funds via an external ‘Trust’ known as a SPV, the bank ignore updating Land Registry to show they have sold the loan on.

    The bank orchestrates collapse, takes to court and fails to declare TRUE SALE ownership of the new funds in.

    Thy call for the bank to repossess. If fact in such cases the bank is no more than a letting agent is to a landlord. Simply a manager of serving notices and collecting ‘receivables’ / repayments

    Check out this video in which RBS-GRG and Lloyds-BSU get slammed for wrong doings to SMEs. MPs hav called for a Tribunal investigation.  https://www.ft.com/content/aab55456-a890-11e7-ab55-27219df83c97

    In Jan 2017 6 HBOS Lloyds bankers jailed for 47 years for fraud. Typically targeted is people with hundreds of thousands to tens of millions in property asset value.  https://www.ft.com/content/aab55456-a890-11e7-ab55-27219df83c97

    Some surveyors then under value to outer sync LTV.  If your Bank is making things very very tough. Be very very careful

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