GFG investigated over suspected fraud

The UK’s Serious Fraud Office (SFO) is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of companies within the Gupta Family Group Alliance (GFG), including its financing arrangements with Greensill Capital UK Ltd.

This remains a live investigation, therefore, comment from the SFO is not forthcoming. However, GFG Alliance has said it will co-operate fully with the investigation.

The investigation will likely hamper efforts to seek alternative funding for GFG following the demise of Greensill. The UK government, which initially turned down a request to provide £170m in financial support for Liberty Steel, which employs 5,000 people and is part of GFG, has promised to save its plants, but the investigation raises questions for the future.

Germany’s financial regulator BaFin has also indicated concern over Bremen-based Greensill Bank's financing of GFG.