Property developer jailed for £300k invoice fraud

A house builder has been jailed for three years after defrauding a finance company out of £295,000 by altering invoices and bank statements

Max Austin, Reporter, Accountancy Daily

Allan Livesey, from the Lake District, was jailed for three years this week, after he convinced a finance company to loan him funds to purchase land to build properties, with the promise that it would receive half the profit once the houses had sold.

However, between June 2018 and September 2019, the businessman fabricated numerous invoices to fraudulently obtain £295,000 for his financial gain.

Livesey approached the finance company for a £1.9m loan to purchase land in Lancashire to build five properties.

The finance company then loaned the full amount with interest with the agreement being that they would receive half the profit once the houses had sold. The company also agreed to pay Livesey £2,000 a month as a site management fee.

Building began in September 2018 and Livesey would receive invoices from the builder which he then forwarded to the finance company which would release funds.

The fraud came to light when it was discovered that Livesey had been amending the builders’ invoices and on some occasions fabricating invoices, which he then presented to the finance company as genuine.

He had also provided them with amended bank statements showing that money had been paid to the contractor when it had been transferred to his account.

Appearing at Carlisle Crown Court, Livesey was sentenced to three years and one month behind bars on 2 August 2023. He has also been disqualified from holding the position of director for 10 years.

Detective constable Claire Keyes, of the economic crime unit, Cumbria Police, said: ‘Livesey amended invoices from contractors for his financial gain. He had an agreement which he signed with the finance company around the loan they provided to him and they trusted him further giving him additional work to monitor other sites.

‘Livesey was aware of what he was doing and defrauded the finance company from very early on in his working relationship with them. I hope today’s sentencing acts as a warning to others considering committing fraud.’