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Robert and Vincent Tchenguiz arrested in Iceland probe | Robert and Vincent Tchenguiz arrested in Iceland probe |
(40 minutes later) | |
Property tycoons Robert and Vincent Tchenguiz have been arrested as part of an investigation into the collapse of Icelandic bank Kaupthing, sources have confirmed. | Property tycoons Robert and Vincent Tchenguiz have been arrested as part of an investigation into the collapse of Icelandic bank Kaupthing, sources have confirmed. |
The Tchenguiz's offices in central London were raided this morning. | The Tchenguiz's offices in central London were raided this morning. |
The Serious Fraud Office (SFO) said nine unnamed men, aged between 42 and 54, had been arrested in London and Reykjavik. | The Serious Fraud Office (SFO) said nine unnamed men, aged between 42 and 54, had been arrested in London and Reykjavik. |
Robert Tchenguiz borrowed £1.25bn from the failed bank to finance deals. | Robert Tchenguiz borrowed £1.25bn from the failed bank to finance deals. |
He used the funds, borrowed months before the collapse, to buy stakes in companies including Sainsbury's and pubs company Mitchells and Butlers. | |
The Tchenguiz brothers are known as much for their socialising as their business deals. | |
Robert Tchenguiz dated the model Caprice, while Vincent has often spoken of his high-rolling in casinos and how he won £1m gambling on the outcome of the Euro 2004 football tournament. | |
Along with the wealth came the trappings, palatial homes and yachts, which have featured along with the brothers, in magazines and newspapers. | |
Flooding out | |
During the course of the police operation seven men were arrested in London and taken to police stations for interview, the SFO said. | |
Two men aged 42 and 43 were also arrested in Reykjavik. | |
The Serious Fraud Office has been working with Icelandic authorities for more than a year, looking at why substantial funds flooded out of the bank in the days before it failed. | |
The SFO also said when it launched the investigation that it would study whether the the bank misled savers to try to encourage deposits into its high-interest Kaupthing Edge accounts in the UK. | The SFO also said when it launched the investigation that it would study whether the the bank misled savers to try to encourage deposits into its high-interest Kaupthing Edge accounts in the UK. |
Kaupthing, once Iceland's biggest bank, collapsed along with the bulk of Icelandic banks during the height of the banking crisis in 2008. | Kaupthing, once Iceland's biggest bank, collapsed along with the bulk of Icelandic banks during the height of the banking crisis in 2008. |