AP

UK fraud investigators step up inquiry into Liberty Steel

Apr 26, 2022, 10:22 PM | Updated: Apr 27, 2022, 10:29 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 This material may not be published, broadcast, rewritten or redistributed.

AP

Image: A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after ...

Associated Press

Authorities identify 2 bodies recovered at site of Baltimore bridge collapse

A major bridge in Baltimore snapped and collapsed after a container ship rammed into it early Tuesday, and several vehicles fell into the river below.

1 day ago

Photo: Mountaineer Jim Whittaker has died at 95....

Gene Johnson, The Associated Press

Lou Whittaker, among the most famous American mountaineers, has died at age 95

Lou Whittaker, a legendary American mountaineer who helped lead ascents of Mount Everest, K2 and Denali, has died at age 95.

1 day ago

File photo: Former Sen. Joe Lieberman speaks in Washington on Jan. 18, 2024....

Associated Press

Former Sen. Joe Lieberman, Democrats’ VP pick in 2000, dead at 82

Former U.S. Sen. Joe Lieberman of Connecticut, who nearly won the vice presidency on the Democratic ticket with Al Gore in 2000, has died.

1 day ago

islamic state attack...

Vanessa Gera, The Associated Press

What we know after the Islamic State group claims responsibility for Moscow massacre

The Islamic State group has claimed responsibility for an attack on a suburban Moscow concert hall that killed at least 133 people.

5 days ago

Moscow shooting...

The Associated Press

Russia: 60 dead, 145 injured in concert hall raid; Islamic State group claims responsibility

Assailants burst into a concert hall in Moscow on Friday and sprayed the crowd with gunfire, killing over 60 people, injuring more than 100.

6 days ago

Photo: Britain's Kate, Duchess of Cambridge visits 282 (East Ham) Squadron, RAF Air Cadets, Cornwel...

Associated Press

Kate Middleton announces she has cancer, is undergoing chemotherapy

Kate Middleton, Princess of Wales, says she is undergoing chemotherapy to treat cancer. She has been out of view since Christmas.

6 days ago

UK fraud investigators step up inquiry into Liberty Steel