LONDON—Britain’s Serious Fraud Office said it is investigating suspected fraud and money laundering at metals magnate Sanjeev Gupta’s GFG Alliance, as well as its financing arrangements with bankrupt lender Greensill Capital.
Greensill’s lending and its collapse have already triggered regulatory investigations in Germany and by other authorities in the U.K., as well as a lobbying scandal at the top of British politics. While one U.K. regulator told a GFG-owned bank to return money to its depositors, the SFO’s investigation is the first time an authority is known to have directly targeted Mr. Gupta’s company and its ties to Greensill, its biggest lender.
A GFG Alliance spokesman said the London-based company would cooperate fully with the investigation but declined to comment further. Greensill declined to comment. The SFO, which prosecutes white-collar crime, declined to comment beyond a short statement confirming its investigation.
The SFO is looking at several years of transactions involving GFG and Greensill, including deals that involved funding provided by Swiss asset manager GAM Holding AG, according to a person familiar with the matter.
GAM declined to comment.
