The Financial Conduct Authority has begun High Court proceedings against Concept Capital Group and others over alleged unauthorised consumer investments of more than £23m in static homes.

The City regulator argues that London-based CCG invited investors to put cash in static homes, which were then said to be rented to social housing tenants placed by local councils.

The watchdog adds: “Investors were promised fixed returns and told the scheme was backed by the UK government, claims the FCA considers were false or misleading.”

It adds that the firm issued unauthorised financial promotions and made false or misleading statements, in breach of the Financial Services and Markets Act 2000 and the Financial Services Act 2012.

The FCA adds that alongside Ian Elliott, a director of CCG, Adrian Felix and hig company Gateridge Consulting, Ayub Swaibu, Edmund Brew, Ernest Kargbo, and Raymondip Bedi and his company Riverrun Consulting were knowingly concerned in CCG’s breaches.

CCG has given undertakings to the court which have the effect of freezing its assets, pending the outcome of the trial or further order of the court.

The regulator says it is seeking restitution orders in favour of affected investors, declarations of contraventions and injunctions to prevent further breaches.