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SFO drops Keydata investigation

The Serious Fraud Office has dropped its investigation into Keydata because of a lack of evidence.

The SFO launched its investigation in July 2009 but now says it does not have enough evidence to secure a prosecution over more than £100m worth of assets which disappeared from Keydata products invested in Luxembourg based vehicle SLS Capital.

A statement on the SFO’s website says: “After extensive consideration we concluded that we had insufficient evidence to secure a prosecution in this case.”

Keydata founder Stewart Ford calls the decision a vindication adding it was the “catastrophic intervention” from the FSA which saw the firm go into administration which caused the problems.

The FSA forced the firm into administration after it sold productsas having Isa status which did, leaving the firm with a multi-million pound tax bill.

He says: “The decision is not surprising and it vindicates what I have been saying from the outset. We have no doubt that but for the catastrophic FSA intervention, all Keydata investors in Lifemark and SLS products would have received their promised returns of income and capital.”

The statement adds that the organisation will now focus on trying to trace assets invested with Luxembourg bases company SLS Capital.

Over £100m had been invested with SLS Capital SA which failed to pay income and fees due to Keydata. Since then it has been discovered SLS’s assets were “misappropriated”, the firm has been wound up and a liquidator appointed in Luxembourg.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Incompetent Regulators Awards Team 3rd May 2011 at 3:07 pm

    Dear SFO

    Can we have an investigation into the FOS please. I think you will find quite a few interesting things going on amongtst the 100,000 yearly complaints!

  2. Shouldn’t they have been focussing on the 10% that Stewart Ford’s family trust was skimming off the top of monies invested via Lifemark without telling investors? That money may well have been enough to keep Lifemark sovent!

  3. How utterly incredible: despite the vast amounts of time and money wasted in complying with the arbitrary edicts of these clown regulators, the FSA in London and the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, nobody can say where the money has gone. It’s an absolute farce.

  4. This sounds very strange – Makes you wonder just who they are protecting?

  5. How convenient.

  6. Robert Morfee 3rd May 2011 at 4:35 pm

    Not surprising. Fraud is not prosecuted in this country well.

    It is not generally realised that the principal agencies for investigating and punishing fraud are (a) the Trading Standards officers at the various district councils and (b) the victimms by way of civil litigation. The latter, of course, will become unaffordable if the Governmant’s current proposals for proceduaral reforms come to pass.

    Robert Morfee

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