FILE PHOTO: The GFG Alliance flag flies after a £ 330 million deal to buy the UK’s last remaining aluminum smelter in Fort William Lochaber, Scotland, UK on December 19, 2016
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Reuters
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The British Serious Fraud Office is conducting an investigation into the goods empire of the tycoon Sanjeev Gupta. The investigation covers the group’s links with the collapsed lender Greensill Capital.
In a statement, the anti-graft agency said it was investigating « alleged fraud, fraudulent trading and money laundering related to the financing and running of businesses within companies of the Gupta Family Group Alliance (GFG), including its funding agreements with Greensill Capital UK Ltd. «
GFG said it would fully cooperate and not comment on the investigation. The OFS said it had no further comment.
Greensill Capital lent companies money by buying their bills at a discount. In March, however, Greensill Capital collapsed after one of its main insurers refused to extend its coverage.
Its sudden failure made waves around the world, attracting Swiss investment bank Credit Suisse, German depositors and former British Prime Minister British Cameron, who did it Week in Parliament for lobbying on Greensill’s behalf.
Authorities will begin dealing with both Gupta and Greensill on Tuesday with the UK’s Financial Conduct Authority. They said they had formally investigated Greensill’s UK operations as part of global investigations.
The German financial regulator closed down Greensill’s Bremen-based bank and filed a criminal complaint against it earlier this year, stating that the Lender could not present any claims for claims on its balance sheet.
GFG was Greensill’s largest customer. In February it said it would « collapse into bankruptcy » if the supply chain finance firm stopped providing working capital, Greensill said in its March bankruptcy filing. Greensill cited a $ 5 billion exposure to the GFG Alliance when it filed for bankruptcy protection in Australia and the UK in March.
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