ONE person has been arrested following a series of raids carried out by the Serious Fraud Office (SFO) in the region.
The co-ordinated raids are part of a long-running investigation into the Alpha and Green Park group of companies for suspected fraud in relation to the companies’ student accommodation and holiday park developments.
The SFO suspects the Alpha-branded companies of fraudulently misleading investors into purchasing leaseholds for student accommodation across the country.
Working alongside Cleveland Police, they carried out formal searches on multiple properties, arresting and interviewing one suspect. At the same time, the SFO also issued several Section 2 notices, which force companies to provide relevant information.
Mick Gallagher, Chief Investigator for the SFO, 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.”
The Alpha-branded companies are suspected of fraudulently misleading investors into purchasing leaseholds for student accommodation in Leicestershire, Lancashire, Staffordshire and West Yorkshire.
And the Green Park-branded companies are suspected to be part of a similar scheme to sell leaseholds for holiday accommodation in Devon.
Alpha and Green Park branded companies sold investments into leasehold units between 2014 and 2019, promising investors eight-ten per cent returns on their investment over the first ten years.
More than 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.
Investigators will contact UK-based investors and ask them to fill out a questionnaire by November 30.
The information provided will help the SFO to identify and pursue new information.
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