Serious Fraud Office arrests three as it kicks off probe into £76m care home scandal
![](https://www.cityam.com/wp-content/uploads/2024/03/Carlauren-Group_Jet-and-Cars.jpg?w=742)
The Serious Fraud Office (SFO) has launched a new investigation into an alleged £76m fraud involving luxury care homes.
The anti-fraud agency raided two sites in St Leonard’s, Dorset, and Aylesbury, Buckinghamshire, and made three arrests today.
The investigation into the UK registered property developer, the Carlauren Group, which collapsed into administration in November 2019.
The Carlauren Group purchased 23 properties across the UK over four years, mostly former hotels, including the historic Windlestone Hall in Durham, offering an annual 10 per cent return on investment in its renovation of these properties into high-end care homes.
Only nine of the properties were ever operational, and some continued to be run as hotels instead of homes.
The group purchased several vehicles purportedly for the company, including two Lamborghinis, a Mclaren 570GT, a private jet, and two yachts.
Over 600 people and companies invested in the scheme by purchasing rooms to be rented out to elderly residents in facilities boasting swimming pools, room service, and other luxury amenities.
Rooms were advertised widely and sold with a guaranteed annual payout and the opportunity to resell the asset back with up to a 25 per cent profit after 10 years.
The Serious Fraud Office launched the investigation today with support from the National Crime Agency (NCA).
Commenting on the news, Nick Ephgrave, the SFO director said: “This company’s abrupt collapse has created turmoil and enormous anxiety for many, with elderly people forced to vacate their homes and investors left with nothing.”
“Today’s arrests are a major development in our investigation and a step towards getting the answers so many people need”, he added.