Dawn raids as SFO sweeps on property companies

The Serious Fraud Office yesterday conducted dawn raids on two property companies suspected of fraud and money laundering. The SFO said that the Alpha-branded group of companies was suspected of fraudulently misleading investors into purchasing leaseholds for student accommodation in Leicestershire, Lancashire, Staffordshire and West Yorkshire. A group of companies branded Green Park is suspected of being part of a similar scheme to sell leaseholds for holiday accommodation in Devon. The companies sold investments in leasehold units between 2014 and 2019, promising investors returns of between 8% and 10% over the first decade, according to a police statement. More than 1,500 investors from about 50 countries, enticed by the advertised guaranteed returns, put an estimated £150m into the schemes. They stopped receiving any returns in 2018, the SFO said. The directors of the firms are thought to have made about £20m. Yesterday morning the SFO conducted a series of co-ordinated raids, interviews and mandatory requests for evidence nationwide, following six months of covert investigation and surveillance. One suspect was arrested and interviewed but has not been charged. The SFO also issued several Section 2 notices, which force companies to provide relevant information. The Times (£)