Serious Fraud Office drops Kaupthing investigation

The Serious Fraud Office has dropped its investigation into Icelandic bank Kaupthing on the grounds of insufficient evidence.

The SFO announced it was opening an investigation into Kaupthing in December 2009 into suspected fraud offences committed within the UK jurisdiction prior to the bank’s collapse during the financial crisis in October 2008.

At the time the SFO said it was particularly interested in efforts made to attract UK investors to the purportedly ‘high yield’ deposit account, Kaupthing Edge. The investigation looked to identify whether misrepresentations or false representations were communicated by the bank in the push to attract UK investors.

In a statement published today, the SFO says: “The director of the SFO has today discontinued the investigation into the circumstances surrounding the collapse of Icelandic bank Kaupthing hf on the grounds that there is insufficient evidence to justify its continuation. 

“The SFO will continue its close cooperation with the Special Prosecutor’s Office in Reykjavik.”