UK fraud office opens Gupta Family Group Alliance probe

The UK's Serious Fraud Office 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)", it said today.

GFG Alliance is owned by Sanjeev Gupta and includes the Liberty Steel group. The financial practices of the group have been under intense scrutiny from politicians and the media, focusing on alleged circular transactions, funding and invoices submitted to collapsed investment firm Greensill Capital that had no underlying physical flow.

GFG's bank, Wyelands, filed its overdue annual results to April 2020 yesterday, revealing that £191mn ($269mn) of its £234mn loan portfolio was classed as non-performing. Wyelands provided receivables financing to Liberty for uninsured trades with companies close to the group, according to documents obtained by Argus. And companies with close links were some of the largest debtors of the bank, according to sources close to the situation.

Wyelands also financed receivables for uninsured trades from companies known internally as "friends of Sanjeev", meaning they have close links to the group.

"GFG Alliance notes the UK Serious Fraud Office's announcement that it has opened an investigation into GFG Alliance. GFG Alliance will co-operate fully with the investigation," a spokesperson told Argus.

Richard Fuller, the MP for North East Bedfordshire, said he welcomed the investigation.

"In my view it is proper that the scope of the SFO investigation is broad: going beyond the specific issues relating to Greensill Capital and looking at conduct as well as financing", he said. Fuller also said the government was correct to not provide taxpayers' money to the group.

By Colin Richardson