Three held in luxury care home fraud investigation

Three people have been arrested as part of an investigation into an alleged £76m fraud involving luxury care homes.

The Serious Fraud Office (SFO) raided sites in Dorset and Buckinghamshire earlier in a new inquiry into collapsed developer Carlauren Group.

The SFO said the firm bought properties to convert into high-end care homes and had offered a 10% return to investors.

But its collapse in 2019 meant elderly residents were forced to move out and investors lost their money.

Investigators said two men and a woman had been brought into custody following the raids in St Leonards, near Bournemouth, and Aylesbury on Tuesday morning.

The SFO said Carlauren Group had acquired 23 properties across the UK over a period of four years, mostly former hotels.

The group also bought vehicles, including two Lamborghinis, a McLaren 570GT, a private jet and two yachts, the SFO said.

Its portfolio included the historic Windlestone Hall in County Durham, birthplace of former prime minister Sir Anthony Eden.

Investigators said more than 600 investors bought rooms that were to be rented out to elderly residents.

Of the 23 properties, nine were turned into care homes and some continued to be run as hotels.

The firm collapsed into administration in November 2019.

Principal investigator Martin Hall said: "Many people have lost their life savings and it is devastating for these individuals.

"We've partnered with the National Crime Agency who carry out these warrants on our behalf."

SFO director Nick Ephgrave said: "This company's abrupt collapse made a terrible impact, with elderly people forced to vacate their homes and investors left with nothing."

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