Three people have been arrested as part of a £76m sting by the Serious Fraud Office into property developer the Carlauren Group — which purchased sites on the Isle of Wight, including King's House and the Ocean Hotel.
Two sites were raided across St Leonard's, Dorset, and Aylesbury, Buckinghamshire, as part of the Serious Fraud Office (SFO) probe, supported by the National Crime Agency (NCA).
The investigation is looking into the UK registered property developer, the Carlauren Group, which collapsed into administration in November 2019.
American property investment company, PCPD, funded by former Carlauren Group investors, had previously revealed its intention to redevelop the Ocean Hotel site, before walking away from the property — and the Isle of Wight.
When the group subsequently folded, the Serious Fraud Office (SFO) said that it led to some elderly residents being forced to move out, and left 600 investors out of pocket.
The Carlauren Group bought 23 properties across the UK, often former hotels, and allegedly claimed to offer annual 10 per cent returns to investors as it sought to turn the buildings into high-end care homes.
However, the SFO said only nine of these became operational and some continued as hotels instead of care homes.
Alongside that, the group allegedly purchased a number of supercars, including two Lamborghinis and a McLaren 570GT, a private jet and two yachts.
Nick Ephgrave QPM, director of the Serious Fraud Office, said:
"This company's abrupt collapse has created turmoil and enormous anxiety for many, with elderly people forced to vacate their homes and investors left with nothing.
"Today's arrests are a major development in our investigation and a step towards getting the answers so many people need."
The group was said to have had 600 people and companies invest in the scheme through the purchase of rooms that were to be rented out to the elderly.
This was inside luxury facilities that boasted of swimming pools, room service and other amenities.
According to the SFO, the rooms were advertised and sold with a guaranteed annual pay-out and opportunity to sell the asset back for a profit after 10 years
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