A property investor who supplies temporary accommodation to local councils is part of a family accused of avoiding tax through bogus prayer sessions, a Guardian investigation has revealed.
Schreiber dynasty under scrutiny
Public records raise questions about the business interests of the Schreiber family, who control a nationwide commercial property portfolio through their investment vehicle, Midos Group. Companies linked to the group allegedly exploited a scheme to deprive councils of tax, according to a court claim.
Meanwhile, a similarly named but separate business, Midos Management Co, has been providing accommodation for homeless people to the same local authorities, charging fees. Lawyers for Midos Group and a spokesperson for Midos Management Co both deny any connection between the two entities, but online ancestry records, archived webpages, and company filings reveal significant personal and professional overlaps between their owners and directors.
Campaigners have voiced concerns, and an MP leading a cross-parliamentary group on temporary accommodation accused the Schreiber family of “having your cake and eating it”.
Faith room scheme allegations
The tax avoidance allegations centre on at least two property companies owned by the Schreiber family, which appear to have benefited from the controversial “faith room” scheme. This scheme, exposed by the Guardian last year, exploits a provision that exempts property owners from paying business rates if commercial space is made available for religious worship. The scheme has saved landlords at least £18 million, according to Verity, the property consultancy that markets it.
Verity incorporated two companies that leased commercial space from landlords and claimed to offer it for open prayer sessions, allowing owners to avoid rates. However, concerns have been raised that some rooms were not used for worship and were unfit for human occupation.
Similar allegations are part of an ongoing claim for £1.7 million of unpaid tax by Dover District Council against defendants including Verity and two Schreiber family businesses that own the Discovery Park science park in Kent. The court documents allege that 56 empty units at the park were claimed to be available for worship sessions, but the sessions involved a pro forma notice, a table and two chairs, and a Verity staff member filming themselves reading a religious text to give a false impression. There is no evidence of any member of the public attending such services. The defendants claim the prayer sessions took place and the scheme was legitimate.
Lawyers for Midos Group, DP East, and Discovery Park said they were separate entities. However, the corporate owner of the park, Brooklee Limited, is ultimately owned by four Schreiber family members. David Schreiber is a director of Midos Group and Brooklee, and Mayer Schreiber, CEO of Discovery Park, is a director of Midos and has referred to Midos Group’s investment in the park.
Another property used in the scheme is a former pub in Clapham, south London, owned by DMS Commercial UK, itself owned by David Schreiber. A notice advertising prayer sessions was pinned to the door, but a neighbour reported only seeing someone for maintenance, never any group prayer sessions. Lawyers for Midos Group said the space was leased to a faith group and that they were aware of various uses and sessions by the group.
Family business connections
Meanwhile, another Schreiber family member appears to be making millions from Lambeth and other councils through Midos Management Co, which matches councils with landlords for temporary accommodation. The company has collected at least £43 million on behalf of landlords providing temporary accommodation to Lambeth since 2019. Midos Management Co is owned by Elizabeth and Jacob Endzweig. Elizabeth Endzweig denied any relationship with Midos Group, saying the name was chosen based on preference. Lawyers for Midos Group also denied any connection.
However, birth and marriage records indicate Elizabeth Endzweig is the daughter of David Schreiber and his wife Miriam, who owns Midos Group (UK) Limited. Elizabeth Endzweig is a co-director of at least three businesses operating from the same Stamford Hill address as Midos Group and over 300 other businesses. She is a co-director of two businesses with her mother and holds shares in Midos MS with her. Midos Management Co’s website formerly stated that “Midos Group is proud to offer our wealth of experience in successfully procuring accommodation,” but this was edited after questions were raised. Endzweig blamed an IT error.
Lambeth council records also showed Midos Estates, a Midos Group subsidiary, receiving funds for temporary accommodation, but Endzweig said this was an error. Midos Group said its brands had not provided temporary accommodation to any council.
Siobhain McDonagh, chair of a cross-parliamentary group on temporary accommodation, said she was not convinced the companies were unconnected, calling it “the ultimate in having your cake and eating it.” Endzweig said her company operates strictly as an intermediary. Corporate records show companies where Endzweig is a director hold at least 125 land titles. She did not confirm whether any of these companies are among the landlords matched with councils, calling it a private matter. At least four other London councils have paid Midos Management Co a combined sum of over £2.5 million in the past three years.
