A long-running investigation by Tower Hamlets Trading Standards has resulted in guilty verdicts against five rogue lettings agents who repeatedly preyed on newcomers to the UK.
Mohammed Moynul Haque and his associates ran a string of companies which were involved in numerous illegal and unfair practices, including ‘bait and switch’ advertising of rooms, misleading advertising, failure to protect or refund tenants’ deposits, and failure to issue legitimate assured shorthold tenancy agreements. They also denied tenants their legal rights to protection from eviction without a court order.
They particularly targeted workers or students who were new to the UK and unfamiliar with the rental market.
Once a flood of complaints about their activities emerged, the rogue letting agents would repeatedly cease trading under one company name and then start up another company with a new name to continue their illegal practices.
Citiside Properties Ltd., based on Bow Common Lane in the London borough, first came to the attention of Tower Hamlets Trading Standards in 2017 when complaints were received about unfair trading practices. When Officers began to investigate, the company’s director, Mohammed Moynul Haque, created a new company called Flintons – also based at the same address.
The activities of Flatsharing Ltd., trading as Flintons, generated a large number of further complaints which became central to the case for the prosecution in February 2018.
Trading Standards Officers raided the company’s offices and seized computers in August 2019, analysis of which revealed further links to other companies, including Barrons London Limited and Roomshare Ltd., trading as Mayfields.
Trial and convictions
The trial began at Southwark Crown Court on 8 April 2024 and was supported by the National Trading Standards (NTS) Tri Region Investigations Team. Around 40 complainants provided testimony and online lettings platform SpareRoom also gave extensive evidence.
Haque was found guilty of four counts of fraudulent trading and two breaches of the Consumer Protection from Unfair Trading Regulations 2008. Haque, who had been charged on all eight counts on the indictment, operated several of the companies that were the vehicles for the fraudulent activity. Evidence showed substantial sums of money moving between his personal accounts, the companies, and other companies which he ran or had an interest in.
Haque’s former wife, Fatima Begum, was found guilty of one offence of fraudulent trading.
Gonzalo Gomez Egea, who was a manager of two of the businesses, was found guilty of two counts of fraudulent trading.
Razaur Rahman Oli and his company, Barrons London Ltd, were convicted of fraudulent trading and an offence under the Consumer Protection from Unfair Trading Regulations 2008 respectively.
Nozir Ahmed and his company, Roomshare Ltd, were convicted of two offences under the Consumer Protection from Unfair Trading Regulations 2008.
Sentencing is due to take place on 5 and 6 December 2024.
Chanapol, an international student and a complainant in the case, said about the outcome: “I know what this means to all witnesses and this result will save many people who might be victims in the future, especially international students (like me), people in their first jobs, or people who try to find a proper place to stay. During those times, I suffered from poor mental health because I lost money, and I felt stupid, so that’s why I kept fighting for this even though it took many years to win. Thank you so much from the bottom of my heart.”
Another complainant, Ivann Schlosser, commented: “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.”
The Executive 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.
“I want to extend a sincere thank you to the complainants for bravely telling their stories to the court about how these companies impacted their lives.
“I’m grateful to National Trading Standards for their support, our barristers for their excellent work in prosecuting this case, and our excellent trading standards officers who worked tirelessly to bring this case to a successful conclusion.”
Lord Michael Bichard, Chair of National Trading Standards, said: “International workers and students who were new to the UK and unfamiliar with the rental market were deliberately exploited, leaving many out of pocket and trapped in a vicious cycle of contracts.
“I would like to thank the Trading Standards officers from Tower Hamlets Council and the National Trading Standards Tri Region Investigations Team who worked in partnership to secure these prosecutions, which should send a strong signal to others involved in similar criminal schemes that their underhand activities will not be tolerated.”
