TWO Bradford companies are among those under investigation by the Serious Fraud Office as part of a major probe into £150m investment schemes.
The SFO is investigating the Alpha and Green Park group of companies for suspected fraud in relation to the companies’ student accommodation and holiday park developments.
Alpha Developments (Bradford) Limited and Alpha Developments (Bradford2) Limited are both being investigated.
The SFO today (Wednesday) carried out a series of co-ordinated raids, interviews and mandatory requests for evidence across the country following a six month covert investigation.
Working with Cleveland Police, the SFO carried out 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.
A spokesperson said: "The SFO suspects the Alpha-branded companies of fraudulently misleading investors into purchasing leaseholds for student accommodation in Leicestershire, Lancashire, Staffordshire and West Yorkshire.
"The Green Park-branded companies are suspected to be part of a similar scheme to sell leaseholds for holiday accommodation in Devon.
"Alpha and Green Park branded companies sold investments into leasehold units between 2014 and 2019, promising investors 8-10 per cent returns on their investment over the first 10 years.
"Over 1,500 investors from around 50 different countries invested an estimated £150 million into the leasehold schemes on the back of these guaranteed returns, but all stopped receiving these in 2018.
"Meanwhile, the directors of the companies are thought to have made around £20 million from their schemes."
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.”
Investigators will contact UK-based investors and ask them to fill out a questionnaire by November 30 this year.
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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