A major fraud investigation has been launched into a group of companies which raised £150m from investors by selling leases for student digs and Devon holiday homes.
The Government’s Serious Fraud Office (SFO) and the police have carried out a series of raids at business and residential properties following a six-month undercover probe into the Alpha and Green Park group of companies.
These are suspected of money laundering and fraud in relation to student accommodation and holiday park developments.
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The SFO suspects the Alpha-branded companies of fraudulently misleading investors into purchasing leaseholds for student accommodation across the country.
And the Green Park-branded companies are suspected of being part of a similar scheme, selling leaseholds for holiday homes in Devon.
Among a list of 27 linked companies in the investigation are Green Parks (Westward Ho!) Ltd, Green Parks Holdings (Ilfracombe) Ltd, and Green Parks Holidays (Ilfracombe) Ltd.
The latter ran the large Ilfracombe Holiday Park in North Devon, which was criticised when it cancelled 54 bookings at short notice in 2020.
Green Parks Holidays (Ilfracombe) Ltd has since been liquidated and the park’s website says it is now under new management.
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The SFO made the investigation into the Alpha and Green Park businesses public after it carried out coordinated raids, interviews and mandatory requests for evidence across the country, on September 29.
Working with Cleveland Police, the SFO was involved in 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.
The SFO said it suspects the Alpha-branded companies of fraudulently misleading investors into buying leaseholds for student accommodation in Leicestershire, Lancashire, Staffordshire and West Yorkshire.
The Green Park-branded companies are suspected of similarly misleading investors into purchasing leaseholds for holiday accommodation in Devon.
Alpha and Green Park branded companies sold investments into leasehold units between 2014 and 2019, promising investors 8% to 10% returns on their investment over the first 10 years.
More than 1,500 investors from about 50 different countries invested an estimated £150m into the leasehold schemes on the back of these guaranteed returns, but all stopped receiving these in 2018, the SFO said.
Meanwhile, the directors of the companies are thought to have made about £20m from their schemes.
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Investigators will now contact 海角视频-based investors and ask them to fill out a questionnaire by November 30, 2021.
The information provided will help the SFO to identify and pursue new information and to continue progressing the investigation as quickly as possible.
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Mick Gallagher, SFO chief investigator, 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 full list of companies under investigation is: Alpha Holdings (GB) Limited, Alpha Properties (Leicester) Limited, Alpha Developments (Leicester) Limited, Alpha Developments (Preston) Limited, Alpha Developments (Stoke1) Limited, Alpha Developments (Bradford) Limited, Alpha Developments (Loughborough) Limited, Alpha Developments (Bradford2) Limited, Alpha Developments (Stoke) Limited, A1 Alpha Properties (Leicester) Limited, Alpha Student Management Limited, A1 Properties (Sunderland) Limited, Alpha Homes Leicester Limited, Alpha Projects (海角视频) Limited, Alpha Developments (Huddersfield) Limited, Alpha Developments (Stoke2) Limited, AGP Holdings Limited. Green Parks Finance Limited, Green Parks (Westward Ho!) Limited, Westbeach Invest Limited, Studyrooms Direct LLP, Westbeach Resort Limited, Green Parks (Holdings) Limited, Green Parks Holidays Limited, Green Parks Holdings (Ilfracombe) Limited, Green Parks Holidays (Ilfracombe) Limited, Premier Ground Rents Limited.