In a significant development related to the 2019 collapse of the Carlauren Group, a property developer implicated in a £76 million fraud, three individuals have been arrested by fraud investigators. The company’s failure had profound effects, leaving approximately 600 investors facing losses and causing elderly residents to be evicted from their homes. The operation, conducted by the Serious Fraud Office (SFO), is a pivotal moment in the ongoing investigation into the allegations surrounding the company’s operations and financial practices.

Carlauren Group had attracted investors with the promise of a 10% annual return on investments through the purchase and renovation of properties into high-end care homes. However, out of 23 properties acquired, only nine were operational, with others still being used as hotels. The company’s extravagant expenditures, which included sports cars, a private jet, and yachts, raised questions about its financial management.

SFO Director Nick Ephgrave detailed the distress and anxiety suffered by both the elderly residents displaced by the collapse and the investors, who were drawn to the scheme by the prospect of significant returns and a 25% profit after ten years. These investors had bought rooms within the properties, which were marketed with an attractive annual payout guarantee.

The arrests mark a critical step in the effort to unravel the details of the alleged fraud and provide answers and potentially some resolution to the individuals and companies adversely affected by the Carlauren Group’s collapse.