THE business behind the redevelopment of an iconic hotel in Cardiff is now under investigation for fraud. 

The Signature Group has been placed under investigation by the Serious Fraud Office (SFO) after falling into administration with losses of up to £140 million. 

The company had reportedly attracted over 1,000 UK and international investors in the redevelopment of iconic landmarks including the Coal Exchange in Cardiff, which abruptly closed on January 17 when the company fell into administration. 

Couples who had booked their weddings at the Coal Exchange this year were left in limbo and many are still waiting for their money back from the company, particularly if like Heidi Watts from Caerphilly, they have been forced to book another venue. 

The Coal Exchange has since confirmed it will be reopening, on March 8, under new management. 

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

Investors loaned money to Signature or purchased a hotel room, apartment or office space in one of the group’s properties, with promised returns on their investment of between eight and 15 per cent.

According to the Serious Fraud Office, this is the fourth new investigation launched since director Nick Ephgrave QPM joined the UK’s specialist anti-fraud agency in September.

Wednesday's SFO operation was supported by the National Crime Agency (NCA).

Director of the Serious Fraud Office, Nick Ephgrave QPM 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.”