A group of North East companies are being investigated over a potential £150m property fraud..
The Serious Fraud Office (SFO) is investigating the Alpha and Green Park group of companies, most of which are based on Gateshead’s Team Valley, over an investment scheme relating to student accommodation and holiday park developments.
SFO officers working with Cleveland Police carried out a series of co-ordinated raids, interviews and mandatory requests for evidence at the end of last month. One person was arrested and a number of Section 2 notices, which force companies to provide relevant information, were issued.
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The SFO suspects the Alpha-branded companies of misleading investors into purchasing leaseholds for student accommodation across the country. The Green Park-branded companies are suspected of being part of a similar scheme which sold leaseholds for holiday homes in Devon.
Of 26 companies being investigated, 18 are registered to Valley House on the Team Valley. It is believed the address is a co-working space rather than dedicated offices.
The SFO said that Alpha and Green Park-branded companies sold investments into leasehold units between 2014 and 2019, promising investors 8-10% returns on their investment over the first 10 years.
More than 1,500 investors from around 50 different countries invested an estimated £150m into the schemes on the back of promised returns, but all stopped receiving these in 2018. The SFO said directors of the companies are thought to have made around £20m from their schemes.
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Mick Gallagher, chief investigator at the Serious Fraud Office, 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 group of companies are thought to have been involved with properties in Sunderland, Leicester, Stoke, Bradford, Loughborough and Huddersfield.
SFO investigators now plan to contact 海角视频-based investors into the companies, and have set up a questionnaire on its website for people to provide information.
The SFO website also contains a list of property schemes that is says are under investigation, including a number in the North East.