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Troubled developer Elliot Group has given investors four weeks to save the third scheme stalled by a fraud investigation into its founder Elliot Lawless.

Construction of the 拢70m tower The Residence (pictured) in Manchester has ground to a halt while the developer writes to investors asking them to 鈥渁ccelerate鈥� their payments.

A spokesperson for Elliot Group said the period to raise funds in order to restart the job would be 鈥渁bout four weeks鈥�.

The 34-storey residential tower, the Liverpool-based firm鈥檚 only project in Manchester, is already well over a year behind schedule following the collapse of its main contractor Forrest in 2018.

Careys was appointed to finish the project in early 2019 but the contractor has now left the site after institutional investors removed their backing.

>> Also read: Liverpool developer at centre of police probe promises update on stalled jobs

The Elliot Group spokesperson added: 鈥淲e have called a moratorium whilst we finalise funding for the project鈥檚 build-out, a task that has been made more difficult, of course, by the police鈥檚 on-going investigation. Institutional funds are waiting for the investigation鈥檚 conclusion before re-engaging with us so we are writing to the scheme鈥檚 original investors this week to request that they bring forward their final payments.

鈥淚n essence, we鈥檙e asking them to make a payment of their balance each quarter for the next year and will pay them interest on each deposit. It鈥檚 not extra cash, just what they had agreed to at the outset, but on an accelerated timetable.鈥�

Elliot Group founder Lawless and Liverpool Council employee, believed to be its regeneration chief Nick Kavanagh, were arrested in December as part of a fraud probe launched by Merseyside Police, with 拢200,000 in cash found in Lawless鈥� city centre flat. Neither men have been charged.

Two other projects worth a combined 拢350m have been stalled in similar circumstances, which are among at least seven of the developer鈥檚 projects currently underway. 

Liverpool-based contractor Vermont stopped work on the 拢250m Infinity and 拢100m Aura residential and student accommodation schemes last month after the projects鈥� preferred debt funder, Maslow Capital, pulled out following the investigation.

Lawless also gave investors of those schemes four weeks to raise the funds needed to revive them, a deadline which was missed last week.

A spokesman for Lawless said the talks for those schemes are now 鈥渋n the hands of lawyers鈥�, with an update expected next week.