Interpol issues red notice for Guptas and associates
Jeanette Chabalala, 05 July 2021
Interpol has issued red notices for the Gupta family, according to the National Prosecuting Authority’s Investigative Directorate (ID). In a statement on Monday, advocate Hermione Cronje said efforts to bring back the Guptas had intensified.
“Interpol has issued red notices against: Atul Gupta and his wife, Chetali; Rajesh Gupta and his wife, Arti; Ankit Jain, former Nulane Investment Bank of Baroda account signatory; Ravindra Nath, director of Wone Management (Pty) Ltd; Ramesh Bhat and Jagdish Parekh, the directors of Pragat Investments (Pty) Ltd.” Continue reading “Article: Interpol issues red notice for Guptas and associates”
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”
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”
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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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”
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”
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”
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”
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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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”
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”
Britain targets 22 people with new anti-corruption sanctions
JILL LAWLESS , 26 April 2021
LONDON — Britain imposed asset freezes and travel bans Monday on 22 people accused of bribery, kickbacks and fraud in its first use of new sanctions powers to target corruption around the world.
Foreign Secretary Dominic Raab told lawmakers that the sanctions would prevent the U.K. from being used as “a haven for dirty money.”
The list includes 14 Russians implicated in a $230 million tax fraud and three members of the Gupta business family who are enmeshed in a corruption scandal in South Africa. Britain is also sanctioning businessman Ashraf Seed Ahmed Al-Cardinal, accused of stealing state assets in impoverished South Sudan, and individuals from Honduras, Nicaragua and Guatemala. Continue reading “Article: Britain targets 22 people with new anti-corruption sanctions”
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”
Fallout From Greensill Collapse Splatters British Government, Leaves Taxpayers With Big Losses
TYLER DURDEN, 07 April 2021
The collapse of UK-based supply chain finance firm Greensill Capital continues to reverberate. In Germany the private banking association has paid out around €2.7 billion to more than 20,500 Greensill Bank customers as part of its deposit guarantee scheme after the bank collapsed in early March. But the deposits of institutional investors such as other financial institutions, investment firms, and local authorities are not covered. Fifty municipalities are believed to be nursing losses of at least €500 million. Continue reading “Article: Fallout From Greensill Collapse Splatters British Government, Leaves Taxpayers With Big Losses”
Greensill and Gupta’s Intertwined Empires Had for Years Raised Concerns Internally
Alistair MacDonald and Duncan Mavin, 03 April 2021
The business empires of metals magnate Sanjeev Gupta and financier Lex Greensill leaned on each other to fuel their growth. But for years executives and advisers close to both entrepreneurs urged the two men to decouple their businesses, according to people familiar with the matter.
They failed to do so. Now Mr. Greensill’s firm, Greensill Capital, is insolvent, and Mr. Gupta’s conglomerate, GFG Alliance, is scrambling to survive. Continue reading “Article: Greensill and Gupta’s Intertwined Empires Had for Years Raised Concerns Internally”