The Serious Fraud Office (SFO) UK has launched an investigation into allegations of fraud, fraudulent purchases and sales and money laundering in Sanjeev Gupta's Liberty Steel empire.
The Serious Fraud Office is a government department that investigates and prosecutes serious or complex fraud and corruption. The SFO is accountable to the Attorney General of England and Wales and is empowered to require any person (or company /bank) to provide any relevant documents (including confidential) and to answer any relevant questions, including those regarding confidential information.
The SFO said it is scrutinizing "the financing and business conduct of the Gupta Family Group Alliance (GFG) companies, including its financing arrangements with Greensill Capital UK."
GFG denies all wrongdoing. According to people familiar with the investigation, the SFO spoke to informants and began an undercover investigation several months ago.
The SFO began investigating the GFG at the most inopportune moment for Sanjeev Gupta, who had almost negotiated new funding for his operations. When the Serious Fraud Office confirmed Friday that it was investigating the GFG Alliance, the would-be metal group savior refused to continue negotiations.
White Oak Global Advisors, which has negotiated the terms of two emergency financing deals with the Australian and British Gupta steel mills, said on Friday that it “is not in a position to continue negotiations with any company for which the Anti-Severe is investigating money laundering fraudulently.
