The Serious Fraud Office today raided two sites and made three arrests in the south of England as part of a new investigation into an alleged £76m luxury care homes 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.

The business collapsed into administration in November 2019, forcing some elderly residents to vacate their homes and leaving more than 600 investors out of pocket.

Over four years, the Carlauren Group bought 23 properties across the UK, mostly former hotels, including the historic Windlestone Hall in Durham, which was the birthplace of former Prime Minister Anthony Eden. The group offered an annual 10% return on investment in its renovation of these properties into high-end care homes.

Only nine of the properties were ever operational and some continued to be run as hotels, instead of homes. The group also bought a number of vehicles purportedly for the company including two Lamborghinis, a Mclaren 570GT, a private jet and two yachts.

More than 600 people and companies invested in the scheme through purchase of rooms that were to be rented out to elderly residents, in facilities that boasted of 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.

The operation was supported by the National Crime Agency.

Nick Ephgrave, 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.”

According to Companies House records, the company was incorporated in September 2014 and was previously known as Propgap Ltd until August 20125, and Corporate Land Solutions Ltd until February 2018.

The firm's founder Sean Murray was described as a “Walter Mitty” character in a report of the firm's collapse in The Standard newspaper.