Anti-corruption agency launches major fraud investigation into former care home boss
The Serious Fraud Office has launched a major fraud investigation into Gavin Woodhouse, the care home entrepreneur.
The investigation is looking into investments he offered in care homes and hotels between 2013 and 2019.
The SFO said it is “investigating suspected fraud and money laundering in relation to the conduct of business by Gavin Woodhouse and individuals and companies associated with him.”
The anti-corruption agency has asked UK-based investors into the suspected fraudulent schemes to complete a questionnaire by 30 September.
It said any information provided “will help us to establish the circumstances of the investments offered, to identify and pursue new information, and to progress the investigation as quickly as possible.”
Woodhouse raised more than £80m from amateur investors between 2013 and 2019, promising generous returns.
He said the cash would be used to build care homes and buy and refurbish hotels.
He gave investors the chance of buying a room in a care home, a hotel or another form of holiday accommodation – and typically promised 10 yearly dividends of about 10% – paid out of the rent the room would generate – plus a commitment to buy the room back after a decade at 125% of the purchase price.
An investigation by The Guardian and ITV News into the scheme also revealed that many of Woodhouse’s projects were incomplete, while the businessman’s firms had a multimillion-pound black hole.
In 2019 administrators had taken over the running of the hotels, which were then closed in March 2020 at the start of the coronavirus crisis.
Some creditors took Mr Woodhouse to court in 2019, with a high court judge describing the business model as appearing to be “thoroughly dishonest”.
The SFO said it “is committed to supporting victims and invites those who believe they have been a victim in connection with this investigation to check this page for updates and information on support services.
“The administrators/liquidators will assess the company’s assets, undertake all appropriate recovery actions and distribute any monies to creditors in accordance with their statutory duties, as regards the respective administrations/liquidations.”
It added: “If we obtain convictions and compensation is appropriate and possible, we will seek to return monies to victims.”
