Four arrested in $60 million UK home insulation fraud probe

April 22 (Reuters) - ​Four ⁠people have been arrested in Britain ​and six addresses searched over an alleged 44 million pound-plus ($60 million) fraud ​involving ‌a government energy efficiency scheme designed to tackle fuel poverty, the ⁠Serious Fraud Office said on Wednesday.

The SFO also ⁠launched a public appeal ​for information about three companies, called Warmfront, JJ Crump and South Coast Insulation Services, which are alleged to have submitted claims with little ​or ‌no work done between 2022 and 2024.

"This scheme was designed to reduce carbon emissions, help households cut costs and stay warm – instead in many cases we suspect little or no ​work was done," said Graham McNulty, the SFO interim director, ‌urging people such as installers to speak up.

"Our door is open and coming forward is the ‌right thing to do," he said.

Warmfront, based in Cannock, central England, was sold in 2024 and now trades under new management ​not connected to this investigation, the SFO said. South Coast Insulation is permanently closed, ‌its website shows. Sheffield-based JJ Crump did not immediately respond to a request for comment.

The case, part of a UK-wide campaign ⁠to tackle ⁠fraud codenamed Operation Henhouse, centres on the ‌government's Energy Company Obligation 4 (ECO4) scheme.

Under the Energy Company Obligation, energy suppliers have to ​help households ​reduce energy consumption and lower heating costs. Its ‌latest version, ECO4, began in July 2022.