SFO abandons search for £103m missing Keydata funds

The Serious Fraud Office has dropped its investigation into the whereabouts of £103m of missing Keydata assets.

The SFO began investigating Keydata in July 2009, one month after the company had been placed into administration.

The investigation attempted to locate £103m worth of secure income bonds sold to Keydata investors. This money was invested in bonds issued by a Luxembourg company called SLS Capital SA.

After PricewaterhouseCoopers had been appointed as administrators of Keydata, it was discovered that SLS had not paid income and fees due to Keydata. It was also discovered that assets of SLS had been misappropriated. SLS itself was wound up and a liquidator appointed in Luxembourg.

SLS had four corporate director companies, three based in Labuan, Malaysia, and BWT Capital which is based in Luxembourg. BWT Capital was controlled by David Elias, a controversial business figure previously investigated by the SFO. Elias died in May 2009.

In a statement issued on on Friday, the SFO said: “Substantial efforts have been made to trace the assets of SLS Capital SA and David Elias in overseas jurisdictions since September 2010.

“These efforts have not met with any success and it is considered unlikely that the situation will change. Accordingly, the SFO is closing this case and will not be pursuing any further enquiries in relation to this matter.”