The Serious Fraud Office (SFO) has conducted a major operation involving raids and arrests, as it announces a new bribery and fraud investigation into the past management of Home REIT, a listed UK social housing company. The suspected offending has an estimated value of £300m.
SFO investigators carried out searches and made arrests at homes in Altrincham, Maidenhead and London – a commercial site in Manchester has also been searched. Assistance was provided by the National Crime Agency.
Home REIT, listed on the London Stock Exchange in 2020, sold investment in its leasing of thousands of homes across the UK, raising more than £850m in its first three years of trading.
Investors were told that their money would be used to buy and restore properties that would be block-let to publicly funded charities and Community Interest Companies to house rough sleepers, veterans and people struggling with addiction. Returns would be generated to investors from rent payments.
In November 2022 an investor report into Home REIT raised multiple concerns about the company including the valuation of its properties and the ability of its tenants to pay rent. It suspended trading on the London Stock Exchange in January 2023.
Assisted by the SFO, Italy’s Guardia di Finanza also carried out a search of a home in Venice.
Emma Luxton, director of Operations at the SFO, said: “This company had a meteoric rise, spending millions on properties that were supposed to house the most vulnerable in society and provide returns for investors.
“Its chaotic downfall has left many with unanswered questions. Today we conducted a major operation to advance our inquiries into suspected bribery and fraud.”
Solicitor general Ellie Reeves MP commented: “The allegations in this case are deeply serious. Vulnerable people, including rough sleepers and veterans, were promised homes, while investors who funded millions of pounds were promised returns. Both groups deserve answers.
“Fraud is a devastating crime harming people and damaging business confidence. I fully support the Serious Fraud Office’s fraud and bribery investigation, working with enforcement partners – at home and abroad.
