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Major fraud probe over company's investment loans

George Herd
BBC News
City of London Police A group of police officers in black clothing, some wearing body armour, standing in the drive of a red brick house. Three officers and standing next to the wall one climbs over the fence from the top of a ladder. City of London Police
Police raided five properties in Merseyside in connection with The Seventy Ninth Group

A major fraud investigation has been launched into an asset management company involved in leisure and mining operations.

Merseyside-based Seventy Ninth Group is being investigated by City of London Police.

The force said its inquiry centred on a "suspected widespread fraud case" involving investors being offered high returns on their loans.

The force said four people had been arrested as part of Operation Mold, with weapons, cash and luxury watches seized during raids in Merseyside.

The Seventy Ninth Group denied all wrongdoing.

The group describes itself as a real estate and wealth management company, with headquarters in Southport in Merseyside.

In addition to leisure sites, it has mining operations in Guinea and Canada.

City of London Police Three photos, one showing two automatic rifles and a machete, another showing stacks of cash, including American 50 dollar bills and UK notes, and a third showing a silver and gold band and turquoise face rolex watch in a paddled box displayCity of London Police
Officers recovered weapons, cash and a luxury watches

"The Seventy Ninth Group operates in real estate, claiming to specialise in the acquisition, management and development of lucrative assets," said the force in a statement.

"They offer investment opportunities selling loan notes secured against properties."

Investors were offered returns of between 12% and 15% on loans starting at £10,000, police added.

"The Seventy Ninth Group tells investors that funds are used for real estate, wealth and aviation," police added.

Anglesey development

The group announced at the start of January it had bought what was known as the Lands and Lakes development near Holyhead, as part of a £250m plan to build a holiday park with nearly 500 chalets and leisure facilities.

According to its website, it said the park would be completed by summer 2025.

The development was bitterly opposed by supporters of the coastal park, including a failed judicial review in October last year, disputing the planning permission granted by the county council on Anglesey.

Geograph | David Dixon Penrhos Coastal Park a two hundred acre park on the outskirts of Holyhead on the coast. The photo shows bushes above a beach that stretches around bay to a forest and field covered point. Geograph | David Dixon
The controversial holiday park is planned for Penrhos Coastal Park, near Holyhead

On buying the site at the start of the year, the company said it was looking forward to developing a "world class holiday destination in collaboration with the local community".

The firm also pledged to invest £1m in local schemes on the island.

It said it "categorically" denied any wrongdoing, saying: "We have been working diligently with our legal advisers to address the claims made as part of the investigation, while also providing information to business partners and other stakeholders.

"The company has also appointed independent forensic accountants to conduct a comprehensive review of the business.

"The Seventy Ninth Group remains committed to servicing its clients."

Land and Lakes An artist's impression of the 500 holiday cottages at Penrhos Coastal Park. It is surrounded by grasses, flowers and castle in the backgroundLand and Lakes
Planning permission was granted in 2016 to build 500 holiday cottages known as the Lands and Lakes development

City of London Police said it carried out searches at five separate properties in connection with the The Seventy Ninth Group, seizing a "large amount of cash, weapons, luxury watches and jewellery".

Four people arrested had been released on bail as inquiries continue.

Responding to the investigation, Anglesey council's chief executive Dylan Williams, said: "The allegations are a cause for great concern.

"We will not be making any further comment until the outcome of police investigations, or any related legal proceedings, have been concluded."

The City of London Police has issued an appeal for anyone who has been contacted by investors from the The Seventy Ninth Group or who work for the company to contact them as part of the investigation.