Sub-letting tenant applied for right to buy discount

A Plymouth Community Homes tenant has been convicted of a £40,000 fraud in a landmark prosecution.

Adrian Pengilley, aged 43, applied to purchase his former council home under the Right to Buy scheme while illegally sub-letting the property.

He moved out and pocketed the rent from the tenant, Plymouth Crown Court heard.

PCH said that his fraud had denied a needy or vulnerable family from moving into his home – at a huge cost to accommodating them in bed and breakfast.

It is the first case of so-called Right to Buy fraud brought by Plymouth City Council.

Pengilley, a council and PCH tenant for 14 years, stood to benefit from a £39,600 discount on the property’s market value under the scheme – though the sale never actually went through.

Handing him unpaid work, a judge praised the council for bringing the prosecution.

Judge Robert Linford fold Pengilley: “The message needs to get out that it is a criminal offence to behave in the dishonest way which you did.”

Pengilley pleaded guilty to fraud between March 2016 and September 2017. He also admitted sub-letting the property between April 2016 and May 2018.

Christopher Cuddihee, for the council, said Pengilley had asked to purchase his home in Cheriton Close, West Park. But, he added, he moved out and sub-let the property.

Mr Cuddihee said that it meant he was no longer eligible for the Right to Buy scheme.

The barrister said that council investigators looked at his bills and social media accounts and spoke to neighbours to establish the defendant had moved out.

Mr Cuddihee said that property should have been available to vulnerable and needy families in need of social housing. He added that the council would spend thousands on placing the homeless in bed and breakfast accommodation.

Jason Beal, for Pengilley, said the sale process under Right to Buy took longer than his client had anticipated.

He said that because of his history, Pengilley was not going to get a mortgage to buy a home.

Mr Beal added that the defendant and his partner had debts of about £15,000 of debts between them.

Judge Linford handed Pengilley a 12-month community order with 160 hours of unpaid work and ten days of probation’s Rehabilitation Activity Requirement. He must also pay £750 towards the costs of the prosecution.

Cllr Sally Haydon, Cabinet member for Customer Focus and Community Safety, said: "Fraud will not be tolerated in Plymouth, especially when it attempts to deny innocent people of something they really need. Social housing is an essential community asset and with waiting lists at an all time high, it is not for people to make money out of. I welcome today's verdict and hope that it stands as a reminder that we will not be afraid to prosecute those who try and cheat the system."

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