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SFO probes possible related-party breaches at Capital + Merchant

Thursday 18th March 2010

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Receivers for failed finance company Capital + Merchant Finance have referred documents to the Serious Fraud Office for investigation into transactions that appear to have benefitted "certain related parties." 

The SFO was investigating "the use of Capital + Merchant funds in contrived structures and with questionable supporting documentation," chief executive Adam Feeley said.  Capital + Merchant failed in 2007, owing $165 million to more than 7,000 investors. 

“The investigation is in its early stages,” Feeley said. “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.”  

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

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