Serious Fraud Office launches probe into property firm’s collapse
Addresses linked to Signature Group were raided yesterday and four people arrested in the NW after over 1,000 investors lost significant sums.
The Serious Fraud Office (SFO) yesterday raided three homes and made four arrests as part of an investigation into Liverpool-based property firm the Signature Group.
The SFO announced it is investigating Signature Group – a business that attracted over a thousand UK and international investors in the redevelopment of iconic landmarks into both residential and commercial units. The Neg understands several estate agencies have been involved in selling the developments in the past to investors.
BANKRUPT
Lawrence Kenwright, 58, Founder of the Signature Group and his wife, Katie, 46, were declared bankrupt last month.
The Signature Group operated for over seven years, buying up predominantly historic buildings within the UK for redevelopment into luxury hotels, residential apartments and office spaces.
Properties in the group’s portfolio of 21 developments included Millennium House and the Shankly (main picture) and Dixie Dean football-themed hotels in Liverpool as well as a cruise liner that was marketed as a “flotel” to be moored off Canary Wharf in London and travel to Ibiza.
Other developments included the George Best hotel and the Crumlin Road courthouse in Belfast and the Exchange hotel in Cardiff’s former Coal Exchange building. It also ran bars and themed nights too.
Property investors loaned money to Signature or purchased a hotel room, apartment or office space in one of the group’s properties with promised returns on their investment of between 8% and 15%. The business collapsed into administration with losses of up to £140 million.
ANTI-FRAUD AGENCY
This is the fourth new investigation launched since Director Nick Ephgrave QPM joined the UK’s specialist anti-fraud agency in September.
Yesterday’s SFO operation was supported by the National Crime Agency (NCA).
Ephgrave QPM, Director of the Serious Fraud Office, says: “The scheme offered attractive returns and used much-loved local landmarks to lure investors.
“We have people up and down the country left out of pocket, and buildings left derelict at the centre of our cities.
“Today’s arrests and searches will help us reconstruct exactly what happened. This is now an active criminal investigation.”
