Fraud probe sees Tchenguiz miss party

Lawyers for Vincent Tchenguiz, the property tycoon suspected of being implicated in the collapse of Iceland's banking system, said yesterday that he is "inconvenienced" by a fraud squad investigation that is expected to drag on for months.

Mr Tchenguiz was back at work at his London office yesterday after being arrested by the Serious Fraud Office.

He missed the previous evening's party aboard his yacht in Cannes, which went ahead without him.

Mr Tchenguiz, his brother Robert and five others were arrested as part of an investigation into the collapse of the Kaupthing bank in Iceland, from which Robert Tchenguiz, who was the bank's biggest shareholder, received loans totalling £1.7 bn.

The brothers are two of Britain's most flamboyant businessmen and the party aboard the Veni Vidi Vici yacht was the subject of rumours about whether Vincent Tchenguiz would show his face to his guests.

Instead a spokesman announced on his behalf: "He is thinking of changing his name to Jay Gatsby. A man who doesn't turn up at the parties he throws."

His lawyer, Sarosh Zaiwalla, said yesterday: "The brothers have been released without charge which suggests that SFO may not have found evidence against them. In fact there exists a possibility that the Tchenguiz brothers could succeed with their claim for misrepresentation against Kaupthing for their losses."