Care homes entrepreneur Gavin Woodhouse under fraud office probe, following ITV News investigation

Gavin Woodhouse raised more than £80 million from armchair investors between 2013 and 2019, an ITV News investigation has found. Credit: Gavin Woodhouse/Twitter

The Serious Fraud Office (SFO) has launched a fraud and money laundering probe into care homes entrepreneur Gavin Woodhouse, following an investigation by ITV News.

Investigators will look at investments offered in care homes and hotels between 2013 and 2019 and are asking investors in the alleged fraud schemes to provide details by the end of September to build its case.

Mr Woodhouse raised more than £80 million from armchair investors during the period, promising generous returns of around 10%.

But an investigation by ITV News and the Guardian found that many of the projects were incomplete and his businesses had multimillion-pound black holes.

The media outlets found at the time that despite raising £16 million during the period under investigation for four new care homes, none were operational and three had not been built.

Millions of pounds ended up transferred to a consulting company owned by Mr Woodhouse and subsequently disappeared.

The SFO said it has asked UK-based investors into the suspected fraudulent schemes to complete a questionnaire by September 30, 2021, and anyone who thinks they should have been contacted but has not should email FLT01.Investors@sfo.gov.uk. This email should contain your name, address and contact number.

Before his empire came crashing down, Mr Woodhouse had promised investors huge returns for stumping up cash to fund his MBI Hawthorn Care and MBI Clifton Moor companies which were supposed to build care homes that never materialised.

He also persuaded investors to part with their cash to fund Afan Valley, which was supposed to build a £200 million adventure resort in South Wales promoted by TV adventurer Bear Grylls.

Concerns were raised the value of some assets included in parent company, Northern Powerhouse Development, were inflated.

Inter-company loans, including £1.2 million to a former director – Mr Woodhouse was the only former one – had subsequently gone missing.

Some creditors took Mr Woodhouse to court in 2019, with a high court judge describing the business model as appearing to be “thoroughly dishonest”.

The SFO said the information provided by investors “will help us to establish the circumstances of the investments offered, to identify and pursue new information, and to progress the investigation as quickly as possible”.