Four arrests in £140m Signature Group fraud investigation

Four people have been arrested as part of a £140m fraud investigation into hotel and property developer the Signature Group.

Three residences in Merseyside and Greater Manchester were raided by the Serious Fraud Office (SFO) on Wednesday.

Signature Group, often referred to as Signature Living, operated for more than seven years, buying up predominantly historic buildings within the UK for redevelopment into luxury hotels, residential apartments and office spaces.

It included dozens of companies and had more than 20 developments, including the Coal Exchange hotel in Cardiff, the Shankly and Dixie Dean football-themed hotels in Liverpool, and the George Best hotel in Belfast, which never opened.

Investors loaned money to Signature Group or purchased a hotel room, apartment or office space in one of the group's properties, with promised returns on their investment of between 8% and 15%.

However, the business collapsed into administration in 2020 with losses of up to £140m.

Nick Ephgrave QPM, director of the Serious Fraud Office, said: "The scheme offered attractive returns and used much-loved local landmarks to lure investors.

"We have people up and down the country left out of pocket, and buildings left derelict at the centre of our cities. Today's arrests and searches will help us reconstruct exactly what happened. This is now an active criminal investigation."

Signature Group also owned a cruise liner marketed as a "flotel" that would be moored off Canary Wharf in London and travel to Ibiza.

The SFO operation was supported by the National Crime Agency.