SFO Arrests Six in £300 Million fraud Examination of Home Reit
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The Serious Fraud Office (SFO) arrested six individuals and executed raids at seven locations on January 11, 2024, as part of a bribery and fraud investigation into Home Reit, a former London Stock Exchange-listed social housing fund. The SFO estimates the suspected offending totals £300 million.
Investigation Details
the SFO launched its investigation in January 2024 following concerns raised about Home Reit’s reported net asset value. The fund, established in 2020, aimed to provide housing for people experiencing homelessness. The investigation centers on allegations of bribery and fraud related to the fund’s operations and financial reporting.
National Crime Agency (NCA) officers assisted the SFO in carrying out searches at residential properties in Altrincham, Maidenhead, and London, as well as a commercial address in Manchester. A coordinated raid also took place in Venice, Italy, wiht the support of the Guardia di Finanza. SFO Case Details: Home Reit Investigation
Home Reit’s History and Ambitions
home Reit was launched in 2020 as the first London-listed property fund specifically focused on addressing homelessness. The company initially aimed to become a £1 billion business and provide homes for 10,000 people. Home Reit Website (Archived). Though, the fund faced increasing scrutiny in late 2023 and early 2024 regarding the valuation of its properties and the accuracy of its financial statements.Trading of Home Reit shares was suspended in January 2024.
Arrests and Ongoing Investigation
the six individuals arrested are suspected of offenses including fraud,bribery,and conspiracy to defraud. The SFO has not released the names of those arrested. The investigation is ongoing, and further details are expected to emerge as the SFO continues its inquiries. The Guardian: SFO Arrests Six Over £300m Home Reit Investigation
Financial Impact
The alleged fraud of £300 million represents a meaningful loss for investors and raises concerns about the governance and oversight of social impact investment funds. The collapse of Home Reit has also raised questions about the future of the properties it held and the housing security of the tenants living in them. Financial Times: Home Reit Investigation