Aziz Rahman, Senior Partner at business crime solicitors Rahman Ravelli,

The UK Government’s anti-fraud wing has launched a probe into the actions of individuals linked to London Capital Finance after the firm went into administration and left thousands of people without their life savings which had vanished.

It comes after police arrested four people in connection with the collapse of LCF – which has been accused by the finance watchdog of mis-selling high-risk bonds as ISAs.n the scheme, which was pulled from promotion by the Financial Conduct Authority in December “on the basis that the way in which it (LCF) was marketing it bonds was misleading, not fair and unclear”.

Victims now have no way of knowing whether they’ll get any of their assets back after the company then went under a month later.

The Serious Fraud Office, working in conjunction with the Financial Conduct Authority, has now opened an investigation into individuals associated with LCF, an official statement said.

Aziz Rahman, senior partner at business crime solicitors Rahman Ravelli, said: “This appears to be a significant case both in terms of the possible amounts involved and the extent of the cooperation between agencies.

We have a situation where the Serious Fraud Office is working in conjunction with the Financial Conduct Authority to open an investigation. And that investigation was opened as a result of a referral from the Financial Conduct Authority to the National Economic Crime Centre (NECC). This case could be viewed, therefore, as a sign that the NECC does have some bite –and that other agencies are looking to it to show its teeth.

And it should come as no surprise that such a case involves cooperation and involvement from a number of agencies. If anything, this case can be seen as an indicator of how many future investigations may proceed, with many agencies working together.

While it is at a very early stage, the investigation may give us some pointers as to how agencies may work together in the future.”

by Bill Boyle
IBS Intelligence Senior Editor
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