Dawn raids at firm linked to fraudulent Devon holiday home scheme

People on a beach in Devon during the summer. Credit: PA

A company that sold leaseholds in Devon holiday homes is under investigation as part of a major police probe into £150million investment schemes.

The Serious Fraud Office (SFO) suspects the Alpha and Green Park group of companies of fraudulently misleading investors into purchasing property leaseholds.

This includes leaseholds for student accommodation across the country, as well as leaseholds for holiday homes in Devon.

A series of dawn raids were carried out on 29 September following a six-month covert investigation by SFO officers.

Serious Fraud Officers carried out their raids with support from Cleveland Police.

One person was arrested following the raids while several notices were served, which require companies to provide certain information.

Mick Gallagher, who is chief investigator at the SFO, said: “Thousands of ordinary people lose their pensions or life savings on risky schemes, while those at the top line their own pockets and enjoy a lavish lifestyle.

The SFO said the Alpha and Green Park-branded companies sold investments into leasehold units between 2014 and 2019, promising up to 10% returns over 10 years.

More than 1,500 people from around the world invested in the schemes, putting in around £150million.

But investors stopped receiving any returns in 2018, while the directors of the companies are thought to have made around £20million.

Investigators said all UK-based investors will be contacted and asked to fill out a questionnaire.