Fraud inquiry starts into shell firm's missing millions

Simon Bowers
November 26, 2005
The Guardian

The Serious Fraud Office has been asked to investigate a suspected fraud at what was thought to be the biggest cash shell on the junior Aim market, Langbar, after it emerged that forensic accountants were "unable to establish the existence" of bank deposits previously said to be worth £365m.

It is by far the biggest suspected fraud to hit Aim, which has been relatively free of scandal since it was set up in 1995. The Stock Exchange said yesterday: "Clearly we are taking this matter very seriously and are working closely with other authorities involved." These include the Financial Services Authority - the City watchdog - City of London Police and, very recently, the SFO.

Concern first arose last month after it was disclosed that Langbar's Monaco-based founder Mariusz Rybak had made £2.5m from a series of share sales in October, selling shares at between 55p and 65p a share when the company was said to have cash deposits in Brazil and the Netherlands worth 220p a share. Trading in shares was suspended on October 12.

In a statement yesterday, the company, which until recently had been known as Crown Corporation, said forensic accountants from investigators Kroll Associates had found it "likely that the company has been subject to a serious fraud"...

Labels: Kroll