Open Letter to Directors, Eden Land Planning Ltd

(updated, August 2024)

Gentlemen,

There follows a clear description of financial and ethical misconduct in your handling of the Redruth-Eden investment project. My figures are accurate to within 1%.

Your Investors Presentation document (which is contractual and predates the Shareholders Agreement by several months) inflated the total acquisition costs by £661,750 or 43%.

You falsely claimed total acquisition costs of £2,200,000. The true figure was £1,538,250.

As per the Investors Presentation, on completion of purchase, the unspent surplus should have totalled £40,000 only, of which £25,000 was earmarked for legal fees around the forward sale.

On completion of purchase in July 2018, your lawyer, ELS Legal*, transferred the excessive unspent surplus of £661,750 from their Client Account into Eden Land Planning's Account.

You did not seek the investors' permission for this transfer. In fact, you have concealed it for more than six years, just as you concealed the true purchase price of £1,475,000 (verified by HM Land Registry, Title no. CL343210).

You have even filed falsified accounts year-on-year at Companies House, tailored to conceal the transfer of £661,750 from Redruth Eden Ltd to Eden Land Planning Ltd.

In 2023, when I asked you to account for the £661,750, you claimed, without providing evidence, to have spent it in project operations. 

Even if your claim is true, it is irrelevant. That £661,750 was not yours to spend. It belonged to the investors. (£29,500 belonged to my family). It represented almost 30% of the capital they had entrusted to Eden for the purchase of land, as per your Investors Presentation.

You are now trying to close the project down by selling the land for a little over £2m (which is probably a fair price for land that originally cost less than £1.5m). Possibly, the investors will accept a negative ROI (i.e. a loss). Possibly, they will never learn that you broke their trust by investing only 65% of their money, having promised to invest 98%.

Finally, if you believe you have done nothing wrong, tell the investors the truth. It is their absolute right to know how you used their money.

Regards 

* ELS Legal changed its name to Spector Constant & Williams Ltd in 2019.

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