A company linked to a property transaction that was investigated by police is now in liquidation with debts of over £1.2m.
Percy Place Developments Limited was set up by Liverpool property developer Elliot Lawless to complete a refurbishment project on Percy Street in Liverpool 8. The ECHO recently revealed that Percy Street was one of two transactions which has been part of an ongoing police investigation into council land and contracts codenamed Operation Aloft.
Mr Lawless paid Liverpool City Council £1.5m for the site on Percy Street in the city's Georgian quarter. Percy Place Developments Limited is now in liquidation and has liabilities of £1,256,506.03 according to documents filed at Companies House. The company entered into liquidation on November 4 this year.
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A statement of affairs document filed on November 4 has revealed information about the company's liabilities. The largest single sum of money owed is £1,060,998.00 to the Equity Group Limited, a company controlled by Mr Lawless.
The company owes £15,000 to accountants Cobham-Murphy, £130,000 to HM Revenue and Customs and £50,508.03 to Lloyds Bank. The company's affairs are now being managed by liquidators Cowgill Holloway Business Recovery LLP.
In October the ECHO obtained a legal document which was submitted to the High Court by Mr Lawless when he challenged the legality of warrants executed by police. He was arrested on December 18, 2019 on suspicion of conspiracy to defraud, bribery and corruption. The developer has strenuously denied any wrongdoing and has successfully challenged the legality of the warrants used by police to search his home and office. He has not been charged with any offence.
When Mr Lawless was arrested police seized £337,342 in cash and 10,442.10 Euros. Merseyside police retained the money despite the High Court ruling that the search of Mr Lawless's home was unlawful
A witness statement by Michael Murphy, a partner at solicitors Hill Dickinson, said that Mr Lawless paid £1.5m for Percy Place. Mr Murphy states that in relation to Percy Place Mr Lawless paid the £1.5m in instalments.
Liverpool council charged Mr Lawless interest at five percent for deferring the payment over three instalments between September 2019 and April 2020. Mr Murphy also stated that the transaction did not cause a financial loss to Liverpool Council.
The same document also revealed that a site Mr Lawless bought from the council on Falkner Street was also being investigated by police. Mr Lawless paid Liverpool Council £325,000 for Toxteth Community College on Falkner Street.
Last year government inspector Max Caller made reference to the Falkner Street deal in his best value report. Mr Caller stated how the deal affected Blackburne House, a shelter for women who had suffered from domestic violence.
The Government report stated: “It is clear that Blackburne House believed that they had a side agreement with ELG that in exchange for supporting the scheme and helping with consultation they would get a fitted-out unit in which to carry out their work.”
However Mr Lawless responded to the findings by stating that the council was responsible for the fit-out, not him. He said: "The case study seems to be missing a paragraph.
"A review of the contract for sale clearly shows in the development agreement that Liverpool City Council was responsible for the fit-out of the unit for Blackburne House.
"We could not complete on the acquisition of the site until this had been agreed so it was never our responsibility nor our intention."
The ECHO approached Mr Lawless for comment on this story.
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