Wharf Limited (0004.HK) net profit up 22%

Property to ports conglomerate Wharf (Holdings) Ltd. (0004.HK) said its net profit for 2007 rose 22% on strong growth in property investment and development in Hong Kong and China. A recent rights issue to which we subscribed to in full for development in China was justified. An International Portfolio is proving advantageous in these turbulent times. The price at market close - 36,95 HK$ 1,05 2,76%
Annual range - 27,50 - 50,25 HK$ indicating plenty of upside when markets recover.

New-build property (England) scam worse than feared, FSA warns

The new-build property fraud carried out by criminal gangs is more serious than originally feared, the regulator admitted today, with more than 200 cases already under investigation and more appearing every day.

The scams appeared to be run by ‘organised rings, using mortgage and property fraud to make significant profits', FSA crime director Philip Robinson told a Council of Mortgage Lender’s fraud seminar.

'There seem to be a lot of criminals who have realised that mortgage fraud allows them not only to wash their ill-gotten gains, but make a profit in the process,' Robinson said.

The average loss on each property is estimated to be around £45,000. Accomplices can include brokers, solicitors, valuers and other professionals in the property market. Robinson warned that these were often hardened criminals involved in other criminal activities, included drugs or people-smuggling.

New Model Adviser revealed last week that police, regulators, and trade bodies were investigating a spate of property frauds that targeted lenders advancing loans on new-build city centre flats.

The complex fraud involves bogus surveys and mortgage applications that artificially inflate the value of the property. Lenders only realise when they are forced to repossess the property and try to sell. The FSA promised cases of enforcement action were in the pipeline.

‘Not many of these have seen the light of day yet, but they will – watch this space,’ Robinson said.

However, he acknowledged the scale of the problem had caught the regulator by surprise, and that it was currently working to improve its understanding of the issued involved.

City of London Police are set to produce a report on mortgage fraud within weeks, and other forces around the country are considering how to deal with the problem.

The CML has also announced that it is planning to overhaul its rulebook to improve transparency in the valuing process to help stem the tide. The soon-to-be established National Fraud Strategic Authority is also likely to tackle the issue as a matter of urgency.

Robinson also took the opportunity to remind consumers of their responsibilities. ‘Inflating incomes, lying about their circumstances – it might seem harmless, but if there's one thing we've all learnt about fraud in recent years, it's that the old cliché about fraud being a victimless crime is simply false,’ he said.