LONDON, Jan 14 (Reuters) - Britain's Serious Fraud Office (SFO) on Wednesday launched a bribery and fraud investigation into the former management of Home REIT, a UK-listed social housing company. The
UK Social Housing Firm Under Investigation for $404 Million Fraud
Investigation Overview
LONDON, Jan 14 (Reuters) - Britain's Serious Fraud Office has arrested six people in an estimated 300 million pound ($404 million) bribery and fraud investigation into the former management of social housing group Home REIT, it said on Wednesday.
Home REIT, which listed on the London Stock Exchange in 2020, spent millions on properties across Britain that were supposed to house vulnerable people. It raised more than 850 million pounds in its first three years of trading.
Investors were told their funds would help to buy and restore properties that would be block-let to publicly funded charities and community interest companies to house rough sleepers, veterans and people struggling with addiction. Returns would be generated to investors from rent payments.
Background on Home REIT
But an investor report in November 2022 raised concerns about the valuation of the properties and the ability of the tenants to pay rent. The company suspended trading in January 2023.
Details of the Investigation
"Its chaotic downfall has left many with unanswered questions," said Emma Luxton, the SFO's director of operations. "Today we conducted a major operation to advance our inquiries into suspected bribery and fraud."
Impact on Investors
Seven sites were searched, including a home in Venice, Italy, the SFO said. No further details were immediately available.
($1 = 0.7435 pounds)
(Reporting by Muvija M and Kirstin Ridley; Editing by Sarah Young and Barbara Lewis)
