Two more arrests made as part of fraud investigation by City of London Police

The operation ran from November 2020 to December 2024, after evidence was found that corrupt housing officers had fraudulently allocated several hundred London Borough of Barking and Dagenham properties to members of the local community for personal financial gain.

Dominic Twomey, leader of Barking and Dagenham Council, said: “The fact we have openly publicised this matter as much as we can, and contacted the City of London Police for guidance and support, shows our commitment to being open and transparent when serious concerns are found. We want this investigation to send a clear message that we simply won’t tolerate illegal activity.

“Some of the comments I’ve seen from the public are calling for those involved to be named, which we obviously can’t do while the investigation is live. I’m hopeful that we’ll get the right result and will be able to talk more about the details once the case has concluded.

“We’re very grateful to the City of London Police for their strong partnership with the council and B&D Reside throughout this process. As the investigation continues, I’d urge anyone who might have even the smallest piece of information to come forward – it could make all the difference.”

The suspected housing fraud relates solely to the allocation of B&D Reside properties. The council-owned housing company provides a range of homes to buy, as well as shared ownership and properties to rent at market and affordable rent. It does not own or manage any council homes.

The police said many of these properties were sub-let by associates of housing officers. Prospective tenants answered social media adverts and were provided contacts as to how they could obtain affordable housing within local areas in Barking and Dagenham.

As part of this process, prospective tenants paid “finder’s fees” and inflated rents. Some rents were paid in part to the council, and some were not.

In 2023, an investigation by Inside Housing tracked how residents in Tower Hamlets were being targeted on social media and offered a chance to jump the housing waiting list in exchange for thousands of pounds in cash. There was no evidence that this was true or that people involved were genuinely connected to the council.

Both the council and its housing company are working with the City of London Police’s Domestic Corruption Unit, the national lead police force for fraud, on the investigation.