British authorities have launched a major investigation into alleged large-scale fraud and bribery linked to Home REIT, a UK-listed social housing investment company, in a case that has intensified scrutiny of the rapidly expanded social housing investment sector. The Serious Fraud Office (SFO) confirmed on January 14, that six individuals had been arrested and seven locations searched as part of a criminal probe into the former management of the company. Investigators estimate the suspected wrongdoing to be worth approximately £300 million, equivalent to nearly $404 million.

The coordinated operation involved the SFO working alongside the National Crime Agency (NCA), reflecting the scale and complexity of the investigation. Searches were carried out at residential properties in Altrincham, Maidenhead and London, as well as at a commercial premises in Manchester. The inquiry has also taken on an international dimension, with Italy’s Guardia di Finanza conducting a search of a property in Venice at the request of UK authorities. The cross-border element underlines the SFO’s concern that financial flows or assets linked to the alleged misconduct may extend beyond the United Kingdom.

Home REIT, which was listed on the London Stock Exchange in 2020, positioned itself as a socially responsible investment vehicle at a time when demand for ethical and impact-focused investments was rising sharply. The company raised more than £850 million from investors, marketing itself as a provider of stable returns derived from leasing housing to charities and community interest companies. These........

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