Police launch full inquiry into Challenor Property Developments

10:40am Saturday 5th July 2008

DETECTIVES are launching a full-scale inquiry into a York property investment business which closed down last month, with investors fearing they have been left hugely out of pocket.

Detective Inspector Adam Harland, the head of North Yorkshire Police’s financial investigation unit, said a small team of detectives and financial investigators was being assembled to investigate Challenor Property Developments. He said that, until now, police had been collating information about the business, based at Regency House, just off the Outer Ring Road at Poppleton.

He said officers had received in excess of 100 calls and emails from people with concerns, with individual investments ranging from £5,000 to £70,000.

He believed it was likely that the total amount invested in the firm would run into millions rather than hundreds of thousands of pounds.

The Press has received up to 30 calls from investors across England who fear they may have lost up to £50,000 in deposits on properties, franchises and Challenor “membership” payments. In some cases, people fear their entire savings could be lost.

One pensioner from Lincolnshire said she had handed over a total of £38,000 to buy a franchise and put a deposit down on a property and was so distressed that she had been put on tranquillisers.

Police have not said there is any evidence of wrongdoing.

DI Harland, who is taking overall charge of the investigation, said one of the team’s tasks in due course would be to speak to several individuals involved in the business – including Chris Douglas and Carl Gilfoyle.

The Press reported last week how Mr Douglas, of Fulford, the key figure behind Challenor, had gone bankrupt. He was a partner in the business until April with Muriel Hodgson, of Earswick, who retired from the partnership at the end of April. We also revealed how a sale agreement document passed to the newspaper had indicated that Mr Gilfoyle, from near Northallerton, had bought Challenor in early May.

However, he strongly denied that the sale, while mooted, had ever gone ahead and claimed he was merely an ex-employee who was himself owed money.

Furniture taken from shut offices

REMOVAL men have been taking furniture from a property company that has closed owing thousands of pounds to investors.

The Press has reported how Challenor Property Developments, which is based in Regency House at Westminster Business Park, just off the outer ring road near Poppleton, closed and its owner Chris Douglas has declared himself bankrupt.

Yesterday Roy Laughton Removals, of Grimsby, were carrying out office furniture from the company’s offices.

Removals owner Trevor Hardy said they had been instructed to do the work by CJM Asset Management. He said around two-and-a-half truckloads of furniture, such as desks and sets of drawers, had been taken to auction rooms in Scunthorpe where they would be sold off – but there were no computers or other valuable items.

At around 11am the removals men were ordered to stop work after the landlord of the building – Mandale – objected, but were later told to restart.

Paul Cooper, of CJM Asset Management, said they had been employed by the trustee of the bankruptcy, CRG Insolvency & Business Recovery, which is in charge of managing the assets of Mr Douglas and selling them for the benefit of any creditors. That company has been instructed by the Official Receiver.

The Press spoke to 44-year-old Mr Douglas, who lives in Fulford, but he refused to comment.

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