A property company based in Stoneclough which persuaded house sellers to hand over money but failed to provide the promised services, has been wound up following a Department of Trade and Industry (DTI) investigation.

Unity Investments Ltd operated in Yorkshire, Leicester, the West Midlands, Wales and Derbyshire, and offered house sellers less than the asking price, implying they already had a buyer lined up to buy the property.

Director Keith Fryer, who ran Unity and its associated company Unity Finance Ltd, traded from his home in Queen's Court, The Parklands, Stoneclough.

The firm charged a fee of £392 to cover costs and searches, which it claimed was refundable on completion, or if Unity withdrew from the contract.

In reality, there were no other buyers and Unity placed the property back on the market at the full asking price. Investigators from the DTI's companies investigations branch found that the only costs paid by Unity were £4 Land Registry fees and these were paid in less than half of the cases examined.

Between January 2002 and July 2003, Unity took processing fees from 172 vendors but completed only nine sales.

The High Court in London heard that Unity Investments Ltd sent misleading letters to estate agents and vendors, charged extortionate fees for adding no value and issued unfair contracts.

Mr Fryer, who ran both companies, was also found to be preparing contracts which should have been drawn up by a qualified person.

The petitions to wind up the companies were presented on December 10 last year under the Insolvency Act 1986 and followed investigations carried out by the companies investigation branch under Section 447 of the Companies Act 1985. The petitions were resisted by the company until March this year.

The DTI said all inquiries concerning Unity Investments Ltd or Unity Finance Ltd should be made to the Official Receiver at: The Insolvency Service, Public Interest Unit North, PO Box 326, Boulton House,17-21 Chorlton Street, Manchester, M60 3ZZ, telephone 0161 934 4182.