Unpacking the Fraud Scandal: Home REIT's Troubling Journey

The UK's Serious Fraud Office arrested six individuals in a £300 million fraud probe involving Home REIT, a social housing group. Home REIT, listed in 2020, aimed to fund housing for vulnerable groups but faced scrutiny over property valuations, leading to trading suspension and ongoing investigations.

The Serious Fraud Office (SFO) in Britain has detained six suspects amidst a significant £300 million bribery and fraud inquiry concerning Home REIT's former management, the agency announced on Wednesday.

Established on the London Stock Exchange in 2020, Home REIT invested heavily in property acquisitions across the UK to support housing for vulnerable populations. The enterprise initially raised over £850 million, pledging investors returns through rent collected from properties provided to publicly-funded organizations for housing those in need.

However, investor reports flagged issues in late 2022 regarding property valuations and tenant rental capabilities, leading to a suspension of trading in January 2023. As investigations into potential fraud and bribery continue, Home REIT supports the inquiry, following searches conducted at multiple locations, including a residence in Venice, Italy.

(With inputs from agencies.)