Luxury cars, yachts and jet seized in £76million care homes fraud probe
THREE people have been arrested and a private jet, two yachts and supercars seized as part of a probe into an alleged £76 million Ponzi-style fraud involving luxury care homes.
The Serious Fraud Office carried out raids at homes in St Leonard’s in Dorset and Aylesbury, Buckinghamshire yesterday morning as part of its investigation into the Carlauren Group, which left more than 600 investors out of pocket when it collapsed into administration.
Carlauren sold units in properties across the UK that it told investors would operate as luxury care homes complete with cinemas, swimming pools and room service. Sales agents promised investors, many of whom were elderly retirees, a 10 per cent annual return plus a guaranteed buy-back with an additional 10 per cent bonus.
Investors who agreed to hold their asset for ten years would be given the opportunity to sell it back with a guaranteed 25 per cent profit, marketing material claimed. The company bought 23 properties but the reality was that only nine were operational, just two were care homes and the rest were in various states of disrepair or were derelict.
Among these was Windlestone Hall in County Durham, the birthplace of former prime minister Sir Anthony Eden, which was bought for £850,000 in 2017. The firm sold 53 units in the building, despite the fact that it was derelict and there was no planning permission, SFO case controller Ray Chitham said.
‘There was water ingress and I think the roof had come off about ten years ago,’ he added. Meanwhile, investors’ cash was allegedly used to buy luxury properties for company bosses, as well as vehicles including a Hawker private jet, two yachts, two Lamborghinis, two Rolls-Royce Ghosts and a Land Rover Vogue. Some of the vehicles were purportedly bought for the company.
And money from later investors was allegedly used to pay back those who had invested early in a Ponzi-style scheme, he said. Mr Chitham, who is leading the investigation, said between 150 and 200 of the investors who have lost millions were based in the UK. ‘ The units were sold for between £80,000 and £100,000,’ he said. ‘And most of these investors are sadly very unlikely to be able to recoup most of these losses.
‘These are just ordinary people who lost their hard-earned money and pension pots after falling victim to compelling marketing and sales people who were themselves making a 10 per cent cut.’
Carlauren entered administration in November 2019 with millions unaccounted for.
SFO director Nick Ephgrave said the company’s abrupt collapse created turmoil and enormous anxiety for its investors, with elderly people forced to sell their homes. He added: ‘Today’s arrests are a major development in our investigation and a step towards getting the answers so many people need.’
‘Unlikely to recoup losses’