Northern Powerhouse Development Group and MBi Group
In August 2021, the SFO announced an investigation into suspected fraud and money laundering in relation to the conduct of business by the Northern Powerhouse Development Group, the MBi Group and individuals and companies associated with them.
The Serious Fraud Office is investigating suspected fraud and money laundering in relation to the conduct of business by the Northern Powerhouse Development Group, the MBi Group and individuals and companies associated with them.
The conduct currently under investigation by the SFO relates to investments offered in care homes and hotels between 2013 and 2019.
Case timeline
9 August 2021 – SFO investigation announced with the launch of a victim questionnaire. The questionnaire has since closed.
Information for investors
Our investigation into the Northern Powerhouse Development Group and MBi Group continues to progress. A number of interviews have been conducted with persons associated with our investigation and further interviews are planned. Various lines of enquiry are also being pursued. Further updates will be provided when appropriate. As this is a live investigation, the SFO can provide no further comment at this time.
Investor Frequently Asked Questions
Why have you only asked UK based investors to complete the questionnaire?
The SFO has not at this stage actively invited investors based outside of the UK to complete the questionnaire or sought to obtain evidence from them. Whilst this may be frustrating and may appear unsatisfactory to investors based overseas, it will enable the SFO to progress the investigation more quickly by focusing on investors based within the UK. Should it become necessary to obtain evidence from investors based outside of the UK, contact will be made at the appropriate time via the appropriate channels.
How long will this investigation take?
The SFO only takes on the most complex cases which can take a number of years to investigate. This investigation will involve reviewing a large volume of material and possibly working across different jurisdictions, and is expected to take some time. We endeavour to progress the investigation as expeditiously as possible and ask you to please be patient while we do so.
How will investors be updated?
We will endeavour to put regular updates on the case page of our website. For legal reasons, and to ensure the integrity of the investigation, we may be unable to provide investors with all the information they might want..
Should investors contact us?
Other than informing us of a change of contact details, we ask that investors do not contact us at this stage. We will contact investors should we need to do so after we have reviewed the questionnaires.
What should investors do with documents and correspondence relating to their investment?
Investors should retain and keep safe ALL documents, including hard copy documents and electronic correspondence, such as emails, they have in relation to their investment(s). Should we require any of this material we will contact investors and arrange with them the best and most secure way of getting it to us. Please do not send us anything unless requested to do so.
Should investors be sharing information with other investors?
We understand that there is a support network between fellow investors in this case, but please consider the possible dangers of sharing personal information and experience on public access online platforms. Sharing personal details could present opportunities for fraudsters and put investors at risk. For more information go to Get Safe Online.
How does the fact that many of the companies have entered into administration or liquidation impact the SFO investigation?
The administrators/liquidators will assess the assets of the companies and take appropriate recovery actions as detailed within their reports to creditors. The administrators/liquidators also have a duty to report their findings to the Department for Business. The SFO will work closely with the administrators/liquidators – obtaining information and material from them as appropriate.
Will I get my investment back?
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.
One of the SFO’s strategic objectives is to deliver justice for victims and recover the proceeds of financial crime. If we obtain convictions and compensation is appropriate and possible, we will seek to return monies to victims.
What support services are available?
If you believe you have been a victim in connection with this investigation and need support for the impact it has had on you and your family, please click here for information on support services. If you would like the SFO to make a referral to your local Police and Crime Commissioner funded victim support service, please contact our Witness Care Team by emailing them at witness.care@sfo.gov.uk and they will arrange that on your behalf.
How we can help you
We will endeavour to put regular updates on the case page of our website to let you know how this matter is progressing.
In the meantime, please:
See our website for support information for victim support services and organisations that can provide financial advice.
Keep safe any relevant material concerning your investment, as this may be required by us at a later stage.
Be aware that personal data you provide to the SFO in connection with this case will be handled in line with the General Data Protection Regulations and Data Protection Act 2018, and may be shared between investigating agencies for law enforcement purposes.
Support services
If you have been impacted by this case and need support, please see this information on support services available to you.
If you would like more information on support services or would like the SFO to make a referral on your behalf to your local Police and Crime Commissioner funded victim support service, please contact our Victim and Witness Care Team.