It is well known that Peverel/Firstport would like to sell of as many House Manager's flats as possible .
This clearly is to enable them to raise funds, in order to mitigate their liabilities.
It may also be the case (thus far no comment from Peverel/Firsport) that if they have taken loans secured against a house manager's flat, without disclosing it to have a resticted use and therin having a reduced value, that would be contrary to the Fraud Act 2006.
However, were any such loans redeemed in full, it is very unlikely the lender would take retrospective action.
In essence the original "mischief" would have been rectified.
Evidence has emerged of the manner in which residents are "encouraged" to change from a "live in" House Manager.
We know that "contributions" of up to £10,000 are offered to resident service charge accounts if they agree to dispense with a live in manager.
Live in House managers approaching retirement (who have no job to lose) are encouraged to suggest to residents to move away from a live in manager.
About Peverel, now understands that "incentives" are being offered to House Managers, Area Managers and Regional Managers, which are thought to be in the region of £2,500, if residents agree to let the live in house manager go.
Naturally, residents are not told of the incentives when the proposal to end the role of the live in house manager is put to them.
Under the fraud act 2006, a person may commit Fraud by False Representation, Fraud by Failing to Disclose Information and Fraud by Abuse of Position.
The person must have acted dishonestly and that they had to acted with the intent of making a gain for themselves or anyone else, or inflicting a loss(or risk of loss) to another.
So, if you are an Area or Regional Manager, who has accepted an incentive(without disclosing it to residents) you would be strongly advised to seek urgent legal advice.
It is open to any resident at a time of their choosing to take legal action under the Fraud Act 2006.
Since in all probability Peverel/Firstport will use the excuse "We told managers to disclose any incentives" it will be the individual named Area and Regional managers that will face action.
