Spain Sends City Fraud Suspects Back to Uk
Six men to be transferred to London on European arrest warrants in connection with a multimillion pound fraud
Six men are to be transferred to London on European arrest warrants in connection with a multimillion pound fraud involving bogus company assets filed on the London Stock Exchange.
The six, who were arrested by Spanish police, are expected to face prosecution over allegations of a ?420m fraud at investment company Langbar International, formerly known as Crown Corporation.
Police in Barcelona confirmed they had arrested five Spaniards and an Argentininian at the request of Britain's Serious Fraud Office, which has spent three years investigating the allegations. Officers from the City of London police and staff from the SFO were in Spain to assist when the arrests were made last week.
"Six people were arrested and interviewed as part of the ongoing investigation into certain individuals previously associated with Crown Corporation Limited," an SFO spokeswoman confirmed.
She said the search and arrest operations had been carried out at four homes and two business addresses in Madrid, Barcelona and Alicante when the six men ? aged from 56 to 76 ? were arrested. A Barcelona police spokesman said the men had appeared before an investigating magistrate but were not remanded in custody.
The SFO investigation began in November 2005 after Langbar International issued a statement to the stock market announcing it could not "establish the existence of, nor verify its entitlement to" around ?370m held in Dutch and Brazilian banks. The following year Langbar said forensic accountants had been "unable to establish the existence of, or verify the company's entitlement to, any of the (deposits) at any time in the company's history".
According to the police, investigators allege the company's entrance to the market and sale of shares were "obtained through fraud and that there were various false announcements in the specialist media in London to generate interest in the shares of the company". The announcements were allegedly placed by the main suspects who afterwards sold the shares.
The SFO spokesman said: "Search and arrest operations were undertaken by the Spanish national police together with the economic crime and money laundering group, the superior chief police of Catalonia with the support of the fraud unit Udes Madrid and the local police of Elche (Alicante) alongside SFO investigators of the SFO and City of London Police last week at four residences and two business premises in Madrid, Barcelona and Alicante."
When the SFO began its investigation in 2005 Langbar had already requested the suspension of its shares. Later that year the company announced a new board.
No-one from Langbar was available to comment yesterday but a statement on the company's website read: "The present board of Langbar International Limited is determined to discover exactly what has transpired concerning company funds and to pursue their recovery. Our aim is to restore value for shareholders to the maximum that can be achieved."
Langbar's former nominated adviser, Nabarro Wells ? which had the task of checking the company complied with AIM rules ? was consequently fined and publicly censured in 2007 for breaching Stock Exchange rules.
The six, who were arrested by Spanish police, are expected to face prosecution over allegations of a ?420m fraud at investment company Langbar International, formerly known as Crown Corporation.
Police in Barcelona confirmed they had arrested five Spaniards and an Argentininian at the request of Britain's Serious Fraud Office, which has spent three years investigating the allegations. Officers from the City of London police and staff from the SFO were in Spain to assist when the arrests were made last week.
"Six people were arrested and interviewed as part of the ongoing investigation into certain individuals previously associated with Crown Corporation Limited," an SFO spokeswoman confirmed.
She said the search and arrest operations had been carried out at four homes and two business addresses in Madrid, Barcelona and Alicante when the six men ? aged from 56 to 76 ? were arrested. A Barcelona police spokesman said the men had appeared before an investigating magistrate but were not remanded in custody.
The SFO investigation began in November 2005 after Langbar International issued a statement to the stock market announcing it could not "establish the existence of, nor verify its entitlement to" around ?370m held in Dutch and Brazilian banks. The following year Langbar said forensic accountants had been "unable to establish the existence of, or verify the company's entitlement to, any of the (deposits) at any time in the company's history".
According to the police, investigators allege the company's entrance to the market and sale of shares were "obtained through fraud and that there were various false announcements in the specialist media in London to generate interest in the shares of the company". The announcements were allegedly placed by the main suspects who afterwards sold the shares.
The SFO spokesman said: "Search and arrest operations were undertaken by the Spanish national police together with the economic crime and money laundering group, the superior chief police of Catalonia with the support of the fraud unit Udes Madrid and the local police of Elche (Alicante) alongside SFO investigators of the SFO and City of London Police last week at four residences and two business premises in Madrid, Barcelona and Alicante."
When the SFO began its investigation in 2005 Langbar had already requested the suspension of its shares. Later that year the company announced a new board.
No-one from Langbar was available to comment yesterday but a statement on the company's website read: "The present board of Langbar International Limited is determined to discover exactly what has transpired concerning company funds and to pursue their recovery. Our aim is to restore value for shareholders to the maximum that can be achieved."
Langbar's former nominated adviser, Nabarro Wells ? which had the task of checking the company complied with AIM rules ? was consequently fined and publicly censured in 2007 for breaching Stock Exchange rules.
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