A councillor has indicated that a police probe into housing fraud in Barking and Dagenham might uncover connections to organized crime syndicates.
According to the City of London Police, “hundreds” of homes owned by Barking and Dagenham Council may have been allocated unlawfully by “corrupt housing officials” for personal benefit.
Labour councillor Rocky Gill remarked that the investigation could uncover “widespread organized fraud—criminal activities at the highest levels,” which could involve utilizing properties for illegal operations like cannabis cultivation.
As part of their inquiry, authorities have already detained six individuals, with two arrests made on September 4, though no charges have been filed yet.
The Labour-led council has clarified that the investigation pertains specifically to properties managed by B&D Reside, its entirely owned private housing enterprise, rather than its municipal housing stock.
Established in 2015, B&D Reside aims to lease and sell affordable residences developed under the council’s extensive regeneration initiatives.
As reported by the Local Democracy Reporting Service, the local government has accrued £1 billion in debts to fund the regeneration efforts, which they plan to offset through rental and sales income.
Kevin Key, the council’s counter-fraud and risk manager, noted that the investigation encompasses “multiple” housing complexes. He mentioned that homes rented fraudulently have been exploited for “a wide range of activities associated with housing and tenancy fraud.”
During an audit and risk committee meeting this week, Key informed councillors that the council has successfully reclaimed 12 fraudulently rented B&D Reside homes since April.
He further revealed that some applicants submitted false documents for residences intended for low-income individuals.
Additionally, others used valid documentation but did so with the intention of utilizing the properties for purposes other than habitation, including listing them on Airbnb for short-term rentals.
Gill expressed concerns, stating, “If these properties are being exploited for every conceivable criminal activity, it indicates we may be dealing with organized crime.”
He noted that private rental properties often manifest as locations for cannabis cultivation or other illicit activities, which are entirely unethical and immoral.
Key confirmed that the council is collaborating with B&D Reside to implement stricter controls to thwart fraudulent applications and is actively working to reclaim the properties.
However, he added that the investigation led by the police necessitates reviewing “hundreds of thousands” of documents related to already rented homes.
Detective Inspector Adam Maskell of the City of London Police’s Domestic Corruption Unit (DCU) stated that the investigation is ongoing and focuses on identifying the primary individuals involved.
“Investigations into extensive fraud are intricate and may require considerable time, especially when numerous people and large quantities of material are involved,” he noted. Maskell assured that the police would “continue to collaborate closely with local government partners to advance the investigation.”
