UK fraud investigators step up inquiry into Liberty Steel

Apr 27, 2022, 10:22 AM | Updated: 10:49 am

LONDON (AP) — British fraud investigators have raided the U.K. offices of the GFG Alliance, owners of the country’s third-largest steelmaker, as part of an investigation into possible fraud and money laundering related to financing from a now-bankrupt lender with ties to former Prime Minister David Cameron.

The Serious Fraud Office opened an investigation last year after Greensill Capital’s collapse forced the owner of Liberty Steel, which has thousands of staff in the U.K., to seek a government bailout. British media have reported that Cameron lobbied government officials, including Treasury chief Rishi Sunak and then-Health Secretary Matt Hancock, on behalf of Greensill.

The fraud office said Wednesday that it is investigating possible fraud, fraudulent trading and money laundering in relation to companies within GFG, also known as the Gupta Family Group Alliance, including “financing arrangements” with Greensill. Investigators have requested documents, including balance sheets, annual reports and correspondence related to the investigation, the agency said.

In a memo to employees, GFG denied any wrongdoing and pledged to cooperate with investigators.

“As part of their ongoing investigation they have today issued procedural … requests for information to some of our U.K. sites, as expected,” GFG said in the memo. “We will comply with the information request orders and will continue to cooperate fully in all manners.”

The company declined to comment.

GFG is led by Executive Chairman Sanjeev Gupta, who was once praised as the “savior of steel” for rescuing struggling steelmakers.

GFG used “supply-chain finance services” offered by Greensill. This meant that if GFG sold a product to another company, it could send the invoice to Greensill and be paid right away, rather than having to wait potentially months for the customer to pay its bills.

This type of financing can be useful for companies with tight cash flows.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


(Facebook Photo/Superior Court of Arizona in Yavapai County)...
Associated Press

Arizona judge has cases reassigned following DUI arrest

The Arizona Supreme Court has ruled that all cases currently assigned to a Yavapai County Superior Court judge recently arrested on suspicion of extreme DUI will be reassigned to other judges.
4 days ago
Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
7 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
7 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
13 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
21 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
21 days ago

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
(Desert Institute for Spine Care photo)...

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
UK fraud investigators step up inquiry into Liberty Steel