The former hotel was found to have no guests but had become an HMO occupied by 18 rent paying people living in "squalid" conditions in 11 of the 15 rooms.

The property had "no working kitchen, unusable toilets, blocked drains and rats" as well as an "interrupted gas supply" and "restricted fire escapes" and came to the attention of Southend on Sea Council and Essex Police in 2021 after complaints from the public about anti-social behaviour, drug use, poor living conditions and the infestation by rats. The 18 tenants paid a total of £5,800 per month in rent.

The council's investigation "took some time as the people involved created a complex web of different limited companies and names" used to operate the property. Finally, it was established that Mr Adam Ali of Trulea estates Ltd trading as Coastal Living Southend Ltd operated the property under a short-term agreement with M F Gregory Ltd. The conditions inside the property are said to have "been so bad that an emergency prohibition order was served which closed the property immediately". All the tenants were then placed in emergency accommodation by the council.

Guilty pleas to Housing Act offences were entered at the Magistrates Court hearing where the landlord and his companies were fined £152,900, ordered to pay £21,872 in costs and a victim surcharge of £680 with the court saying that the level of fine should serve as "both a deterrent for naive and incompetent landlords as well as a deterrent to company directors".

Cllr. Martin Terry, Cabinet Member for Public Protection, commended the council's investigating team and said "It is unbelievable that in this day and age, these people were able to operate in such a heartless way, exploiting residents and providing such squalid living conditions".

Cllr. Ian Gilbert, Cabinet Member for Economic Recovery, Regeneration and Housing, said "This property housed people in appalling conditions and risked the lives of all of the occupiers. The prosecution took a great deal of effort by officers but has produced a satisfactory result and a clear deterrent for rogue landlords operating in our city".

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