UK street is home to EIGHTY fake businesses - with 14 new ones popping up last week
An image of Henry Drive in Leigh-on-Sea
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A street in Leigh-on-Sea has become home to more than 80 fake businesses, with 14 being created just last week.
Henry Drive contains wholesale clothing sellers but only has around 30 houses, official records have revealed.
A number of businesses selling clothes have popped up as registering as residential properties.
The owners come from countries such as Italy, Georgia, Germany, France and Morocco.
Boats sit on the mud at low tide at Old Leigh, Leigh on Sea, near Southend, Essex
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A financial crime expert has suggested the mass registering of companies is likely the work of criminal gangs.
Gangs could look to use the leafy Essex street for money laundering and obtaining bank loans.
Registering a business with Companies House costs just £12.
Supposed companies are even registering at addresses which they do not reside in.
Ian and Tess Ross have had six companies register at their home in the past few weeks.
“None of these businesses have anything to do with me,” Ross told the BBC.
"The first one was set up at the beginning of June, the latest one was set up two days ago.
“Henry Drive is just a quiet residential street but in the one post code we are in, we now have 80 businesses registered - it would be like a clothing alley if it was true.
Old person looking at his phonePA"It has got more worrying the more letters we got because it shows the system is out of control.
"They just seem to be coming out on the Companies House website which many people assume means the businesses are real.
"It is getting complicated and it is taking up quite a lot of my time."
Financial crime expert Graham Barrow said: “They’re burner companies. Just like burner phones that you use and then throw away, so too these companies are used and discarded - they are only ever going to have a short life.
"This is highly likely to be an organised crime group. And, if so, it is multi-million pound stuff. It is just scary.
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A general view of a sign at HMRC in East Kilbride
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"There is a very significant problem with scam companies being set up and abusing the financial system. It is really important for people whose homes are registered to file the paperwork to get their addresses removed."
An HMRC spokesperson said: "Anyone receiving correspondence to their address from HMRC for a business that they are not aware of should contact us immediately."
A Companies House spokesperson added: "We are sorry to hear about the difficulties these individuals are experiencing and will take action where the law allows.
"The Government is bringing forth measures to reform Companies House in the Economic Crime and Corporate Transparency Bill.
"Once in force, the bill will significantly enhance the role and powers of the Registrar of Companies, so she can become a more active gatekeeper over company registrations - including by cracking down on the use of false addresses.”