Three arrests have been made by the Serious Fraud Office (SFO) as part of an investigation into an alleged £76 million luxury care home fraud.

The raids in St Leonard’s, Dorset and Aylesbury, Buckinghamshire were part of an investigation into the UK registered property developer, the Carlauren Group, which went into administration in November 2019, requiring some elderly residents to vacate their homes and leaving over 600 investors out of pocket.

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.”

The Carlauren Group bought 23 properties, mostly former hotels, and offered an annual 10% return on investment on their conversion into luxury care homes.

Only nine of the conversions were completed with some of the properties remaining hotels.

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 the purchase of rooms that were to be rented out to elderly residents with facilities, including 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% profit after 10 years.