Imperial probed by SFO

The Serious Fraud Office has been called in to investigate Imperial Consolidated, the UK-based offshore finance group that went into administration in June. Investors face losses of up to £200m.

Allegations that investor's money had been diverted away from the group's stated investments had initially been examined by the Fraud Squad of the Lincolnshire Police.

An SFO spokesperson said: I can confirm that this is a new case for us. No one has been charged. We are still gathering information. I cannot say how long it will take or if anyone will be charged. We are being assisted by the Lincolnshire Police.

As part of the investigation, Detective Inspector Kim Booth of the Lincolnshire force visited Imperial offices 10 days ago. He said: I can confirm I was at Binbrook [Lincolnshire] in the course of conducting inquiries into certain matters. I cannot either confirm or deny links between my inquiries and an investigation currently being carried out by the SFO.

Lincoln Fraser and Jared Brook, two of the founders of Imperial, officially resigned as directors in April 2001. Three months later a court order was made in favour of the Department of Trade & Industry banning the two men from acting as directors of any UK company for four years, as result of their role in an earlier failed business venture. The disqualification came into effect on 11 February 2002.

But the two banned directors continued to control the financial services group until its collapse, says Imperialÿs administrator, Mazars Neville Russell, which also claims that those running Imperial defrauded its creditors. The administrators for Imperial are in the process of identifying the failed groupÿs assets. At least 50 per cent are held as mining rights.