Home REIT Scandal: Arrests Made in Major Fraud Investigation

The UK's Serious Fraud Office has arrested six in a £300 million investigation into the former management of Home REIT, a social housing group meant to aid vulnerable people. Concerns were raised about property valuations and tenant payments, leading to trading suspension.

Britain's Serious Fraud Office has detained six individuals in connection with a £300 million bribery and fraud investigation targeting former officials of the social housing group, Home REIT. The agency disclosed the arrests, marking a significant development in a case rocking the UK social housing sector.

Home REIT, listed on the London Stock Exchange in 2020, attracted investments exceeding £850 million in just three years, promising to refurbish properties for rough sleepers and vulnerable groups via publicly funded organizations. Despite the noble cause, an investor report from November 2022 flagged alarming issues on property valuations and rent-payment viability, initiating the company's downfall. Trading was subsequently halted in January 2023.

The SFO's director of operations, Emma Luxton, labeled the company's collapse as chaotic, highlighting unresolved inquiries into suspected bribery and fraud. The SFO conducted searches across seven locations, including one in Venice, Italy, to secure further evidence. More details are awaited in this unfolding scandal.

(With inputs from agencies.)