Article: U.K. To Investigate Audits Into Greensill and Gupta’s Bank

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U.K. To Investigate Audits Into Greensill and Gupta’s Bank

Jonathan Browning, 28 June 2021

The U.K.’s audit regulator has begun investigations into the auditors for Greensill Capital and Sanjeev Gupta’s Wyelands Bank following the collapse of the trade finance specialist.

The Financial Reporting Council will probe Saffery Champness for its audit of Greensill’s 2019 accounts and will separately look at PricewaterhouseCoopers LLP, which audited Wyelands Bank. The investigations will be conducted by the regulator’s enforcement division, it said Monday. Continue reading “Article: U.K. To Investigate Audits Into Greensill and Gupta’s Bank”

Article: How factoring fraud takes place

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How factoring fraud takes place

Barry Faudemer, 02 June 2021

Cash-strapped businesses grappling with the cost of the pandemic are increasingly securing loans against the value of unpaid invoices, or ‘factoring’ as it is often referred to.

However, such a trend is also proving irresistible to criminals keen to exploit the opportunities of this growing market. Factoring fraud is a fraud committed against a debt factoring company by one of its customers. Continue reading “Article: How factoring fraud takes place”

Article: Credit Suisse scandals prompt Switzerland to think unthinkable: punish bankers

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Credit Suisse scandals prompt Switzerland to think unthinkable: punish bankers

John O’Donnell and Brenna Neghaiwi, Reuters, 28 May 2021

Exasperation with Credit Suisse following a string of scandals is prompting Switzerland to rethink a system in which top bankers have been largely untouchable.

Credit Suisse’s heavy losses from the collapse of family office Archegos and the decimation of billions of client investments backed by insolvent British financier Greensill have angered regulators and triggered a rare discussion among lawmakers about fining bankers.

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Article: Liberty Steel breached £18m loan with Metro Bank – report

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Liberty Steel breached £18m loan with Metro Bank – report

Angharad Carrick, 23 May 2021

Metro Bank is reportedly still waiting for the repayment of an £18m loan from embattled steel group Liberty.

It is the latest sign of trouble for Liberty’s owner GFG Alliance which is being investigated by the UK Serious Fraud Office for alleged money laundering and fraudulent trading. Its future has been in doubt since its main backer, supply chain finance firm Greensill Capital collapsed into administration in March.

But its troubles started some time earlier, with a loan secured on the steelworks as early as 2018, the BBC reported. Filings at the Isle of Man Companies Registry show that it’s one of a portfolio of industrial properties, including another factory in South Wales, which were pledged as security for an £18m loan from Metro Bank.

Liberty’s accounts for 2018-19 say that “due to breaches of… covenants and restrictions, Metro bank have called in the [loan] facility and have stipulated that full repayment must be made” by 31 March 2020.”

A GFG Alliance spokesman declined to say what caused the terms to be breached and added: “no loan terms have been breached due to non-payment” and “discussions are ongoing and are being resolved.”

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Article: Sanjeev Gupta’s GFG Alliance faces scrutiny from UK’s Serious Fraud Office

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Sanjeev Gupta’s GFG Alliance faces scrutiny from UK’s Serious Fraud Office

Stuart Burns , 18 May 2021

The UK’s Serious Fraud Office (SFO) has gone public investigating charges that Sanjeev Gupta’s GFG Alliance (Gupta Family Group Alliance) holding company and subsidiaries, such as Liberty Steel, has been involved in fraud, fraudulent trading and money laundering.

As such, that has almost certainly put the end to refinancing efforts, at least for parts of the group in the UK. Continue reading “Article: Sanjeev Gupta’s GFG Alliance faces scrutiny from UK’s Serious Fraud Office”

Article: GFG Alliance: Fraud investigation now looms

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GFG Alliance: Fraud investigation now looms

Brian Taylor, 17 May 2021

An investigation being undertaken by the Serious Fraud Office (SFO) of the government of the United Kingdom may shed light on to what extent metals producer the GFG Alliance has been affected by the former Greensill Capital, or to what extent the two firms worked in tandem to create financial irregularities.

According to online reports from The Guardian and other U.K.-based media, the announcement by the SFO that it was looking into GFG “immediately caused the collapse of a rescue deal for Liberty Steel and raised fears over thousands of British jobs.” Continue reading “Article: GFG Alliance: Fraud investigation now looms”

Article: U.K. Probe of Gupta’s GFG a Big Test for Beleaguered SFO

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U.K. Probe of Gupta’s GFG a Big Test for Beleaguered SFO

Ellen Milligan, 16 May 2021

The Serious Fraud Office will start a criminal probe into Sanjeev Gupta’s GFG Alliance just as the beleaguered British prosecutor faces intense criticism for its inability to secure a high-profile conviction.

The SFO has struggled to prosecute individuals after securing settlements with companies. In recent weeks, it dropped its probe into former Airbus SE directors and was dealt a humiliating setback after its trial against two former Serco Group Plc directors fell apart because it failed to disclose evidence.

The investigation into suspected fraud and money laundering in relation to GFG and its financing agreements with Greensill Capital may well be its biggest probe in years and much is riding on it. There’s pressure from lawmakers for the prosecutor to investigate Gupta’s empire and its dealings with Greensill. Continue reading “Article: U.K. Probe of Gupta’s GFG a Big Test for Beleaguered SFO”

Article: UK targets Gupta’s GFG Alliance in fraud probe linked to Greensill

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UK targets Gupta’s GFG Alliance in fraud probe linked to Greensill

Huw Jones, Eric Onstad, 14 May 2021

Tycoon Sanjeev Gupta’s commodities empire is being investigated by Britain’s Serious Fraud Office in a probe that encompasses the conglomerate’s links to collapsed lender Greensill Capital, the SFO said on Friday.

The probe piles pressure on Gupta, who has been scrambling to refinance his international web of businesses in steel, aluminium and energy after supply chain finance firm Greensill filed for insolvency in March. Continue reading “Article: UK targets Gupta’s GFG Alliance in fraud probe linked to Greensill”

Article: British Fraud Unit Is Investigating Gupta and Greensill

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British Fraud Unit Is Investigating Gupta and Greensill

Stanley Reed, 14 May 2021

Britain’s financial crime unit is investigating suspected fraud and money laundering involving the businesses of Sanjeev Gupta, whose global metals empire ballooned in recent years with the aid of billions of dollars in financing from the failed firm Greensill Capital.

The Serious Fraud Office said Friday it was looking into potential fraud “in relation to the financing and conduct of the business of companies” within the Gupta Family Group Alliance, “including its financing arrangements with Greensill Capital UK.”

The announcement is the first indication that British authorities may pursue criminal charges against Mr. Gupta, the metals trader who runs the loose collection of businesses that bear the family name, and his ties to the finance firm founded by Lex Greensill.

That company, which expanded quickly over the past decade, collapsed spectacularly in March, entangling SoftBank and Credit Suisse and igniting a political scandal in Britain.

The Gupta companies and Greensill Capital were closely intertwined, and Mr. Gupta and Mr. Greensill were entrepreneurs who got rich as their businesses expanded. Greensill built up its so-called supply chain finance business by lending money against the sales of Mr. Gupta’s companies.

Greensill then packaged the loans into securities to be sold to investors by Credit Suisse and other firms. Greensill’s collapse was partly caused by regulators’ and insurance companies’ concerns that it was overreliant on loans to the Gupta group.

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Article: Gupta empire facing UK fraud probe over Greensill

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Gupta empire facing UK fraud probe over Greensill

Simon Jack, 14 May 2021

The business empire of Liberty Steel owner Sanjeev Gupta is under investigation by the Serious Fraud Office (SFO).

The probe is over suspected fraudulent trading and money laundering, including its financing arrangements with failed company Greensill Capital UK. Greensill, a major lender to Mr Gupta’s business, collapsed in March.

GFG Alliance, Mr Gupta’s family conglomerate, said it would co-operate fully with the investigation. Continue reading “Article: Gupta empire facing UK fraud probe over Greensill”

Article: SFO launches money laundering probe into Gupta family over ties to Greensill Capital

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SFO launches money laundering probe into Gupta family over ties to Greensill Capital

HMichiel Willems, 14 May 2021

The Serious Fraud Office (SFO) said this morning it is launching an investigation into the Gupta Family Group Alliance.

“The SFO is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the Gupta Family Group Alliance (GFG), including its financing arrangements with Greensill Capital UK Ltd.,” the watchdog said in a statement shared with City A.M.

“As this is a live investigation, the SFO can provide no further comment,” it added. Continue reading “Article: SFO launches money laundering probe into Gupta family over ties to Greensill Capital”

Article: What The Boom In Fraud Says About The Current Market Environment, Part 2

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What The Boom In Fraud Says About The Current Market Environment, Part 2

TYLER DURDEN, 01 May 2021

Just about three months ago, I wrote a blog post which featured this quote, from Charles P. Kindleberger’s Manias, Panics and Crashes: “Swindles are a response to the appetite for wealth (or plain greed) stimulated by the boom.” Since then, the number of frauds, or swindles, that has been revealed has soared, a clear testament to both the breadth and degree of greed inspired by the current boom.

Most recently, we saw the collapse of Greensill Capital as the result of fraud. Like WireCard, Greensill was a relatively young finance company looking to disrupt its more mature competitors which took a few (illegal) short cuts in the process. Continue reading “Article: What The Boom In Fraud Says About The Current Market Environment, Part 2”

Article: German Regulator Accuses Deutsche Bank Board Member Of Insider Trading Linked To Wirecard

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German Regulator Accuses Deutsche Bank Board Member Of Insider Trading Linked To Wirecard

TYLER DURDEN, 20 April 2021

For a minute there, it appeared that Credit Suisse might have snatched Deutsche Bank’s crown as the most dysfunctional bank in Europe as the Swiss lender struggled with the fallout from the Archegos blowup and the collapse of Greensill (a scandal that has set off a massive corruption scandal in the UK, and triggered renewed calls for regulatory reform in the European financial system). CS has announced billions of dollars worth of losses tied to the scandals, fired its head of risk and nearly half a dozen other senior employees, and taken other steps in an attempt at penance. But on Monday, Deutsche Bank, which seemingly can’t go more than couple of quarters without a scandal, has found itself in the headlines once again. Continue reading “Article: German Regulator Accuses Deutsche Bank Board Member Of Insider Trading Linked To Wirecard”

Article: National Audit Office Launches Latest UK Probe Into Greensill

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National Audit Office Launches Latest UK Probe Into Greensill

Najiyya Budaly, 16 April 2021

Britain’s public spending regulator said on Friday that it will investigate why the government accredited collapsed finance company Greensill Capital to provide cash to struggling businesses through the national COVID-19 support scheme.

The National Audit Office, an independent parliamentary body, said it will launch a probe into the role of Greensill in offering the Coronavirus Large Business Interruption Loan Scheme to large businesses on behalf of the government. It is the latest probe into government links to the supply-chain finance firm, which is in administration. Continue reading “Article: National Audit Office Launches Latest UK Probe Into Greensill”

Article: BoJo Launches Investigation Into Cameron’s Lobbying On Behalf Of Greensill

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BoJo Launches Investigation Into Cameron’s Lobbying On Behalf Of Greensill

TYLER DURDEN, 13 April 2021

For British PM Boris Johnson, the fallout from the collapse of Greensill has been akin to being gifted a golden saucer filled with excrement. At the time, BoJo apparently didn’t see anything wrong with facilitating the lobbying objectives of one of his predecessors, former PM David Cameron. But now that the British tabloid press has sicced the hounds on the PM, he has apparently realized it’s time for some damage control.

To wit, the FT reports that Downing Street and the Cabinet Office have launched a wide-ranging investigation after acknowledging that there was “significant interest in this matter.” Continue reading “Article: BoJo Launches Investigation Into Cameron’s Lobbying On Behalf Of Greensill”