THE Serious Fraud Office carried out two raids and made three arrests as part of an investigation into the controversial Carlauren Group, which bought sites on the Isle of Wight, including the Ocean Hotel and King's House.

The raids in St Leonard’s, Dorset, and Aylesbury, Buckinghamshire, are part of an investigation into an alleged £76 million fraud involving luxury care homes.

The UK registered property developer collapsed into administration in November 2019, requiring some elderly residents to vacate their homes and leaving more than 600 investors out of pocket.

Over four years, the Carlauren Group purchased 23 properties across the UK; mostly former hotels, offering an annual 10 per cent return on investment in its renovation of these properties into high-end care homes.

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Only nine of the properties were ever operational, and some continued to be run as hotels, instead of homes.

The group also purchased a number of vehicles purportedly for the company, including two Lamborghinis, a Mclaren 570GT, a private jet and two yachts.

Over 600 people and companies invested in the scheme via purchase of rooms, that were to be rented out to elderly residents, in facilities that boasted swimming pools, room service and other luxury amenities.

Rooms were advertised widely and sold with a guaranteed annual payout and the opportunity to resell the asset back with up to a 25 per cent profit after ten years.

Nick Ephgrave QPM, director of the Serious Fraud Office, said: “This company’s abrupt collapse has created turmoil and enormous anxiety for many, with elderly people forced to vacate their homes and investors left with nothing.

“Today’s arrests are a major development in our investigation and a step towards getting the answers so many people need.”