SFO investigates Capital + Merchant

The Serious Fraud Office says it's investigating Capital + Merchant following a referral from the collapsed finance company's receivers Grant Thornton.

Adam Feeley, the SFO's chief executive, said today the investigation was focused on specific transactions which, on current information, appeared to have benefitted certain related parties through the use of Capital + Merchant funds in contrived structures and with questionable supporting documentation.

“The investigation is in its early stages. The immediate focus of our work is to gather, analyse and evaluate all the relevant documentation around these transactions, and form a view as quickly as reasonably possible as to the merits of these matters,” Feeley said.

The SFO will speak to people involved in these issues, including those who may have benefitted from them.

"We have received excellent cooperation from Grant Thornton, and from other parties including the second receivers Korda Mentha. We will liaise further with them, and continue to collaborate with other regulatory agencies as appropriate,” Feeley added.

Capital + Merchant collapsed in November 2007 owing some 7000 investors about $165 million.

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