Serious Fraud Office Focus on Property Scams

Serious Fraud Office Focus on Property Scams.

In August we reported on the SFO investigation into the investments offered by Gavin Woodhouse of Northern Powerhouse Developments fame. See our article here – LINK.

Now there has been another major announcement by the SFO following dawn raids upon Alpha and Green Park group companies which sold student accommodation and holiday home investments in the UK. According to the SFO Press Release – LINK, the sums involved are in the region of £150m. The majority of investors in these schemes are already involved in legal actions seeking compensation from the parties involved in the formation, operation, promotion and sale of these investments.

The Press Release states:

• The SFO suspects the Alpha-branded companies of fraudulently misleading investors into purchasing leaseholds for student accommodation across the country.
• Green Park-branded companies are suspected to be part of a similar scheme, selling leaseholds for holiday homes in Devon. 

The two recent announcements send a clear message that the Serious Fraud Office has been looking into room sale investment schemes and is prepared to prosecute. The collapse of many of these schemes and the unlawful activities of the company directors is coming under scrutiny at long last. We will be writing to the SFO highlighting other such schemes and also the recovery room activities which investors are often subjected to.

The SFO statement continues:

“Alpha and Green Park branded companies sold investments into leasehold units between 2014 and 2019, promising investors 8-10% returns on their investment over the first 10 years. Over 1,500 investors from around 50 different countries invested an estimated £150 million into the leasehold schemes on the back of these guaranteed returns, but all stopped receiving these in 2018.

Meanwhile, the directors of the companies are thought to have made around £20 million from their schemes.

Commenting on the case, Mick Gallagher, Chief Investigator, Serious Fraud Office, said:

“Thousands of ordinary people lose their pensions or life savings on risky schemes, while those at the top line their own pockets and enjoy a lavish lifestyle. The Serious Fraud Office is committed to delivering justice for victims of fraud and corruption. We invite anyone who believes they have a connection with our investigation to come forward.”

Serious Fraud Office Focus on Property Scams.