On 29th September 2020 four individuals with links to the collapse of commodities trader Balli Group Plc (Balli Group) and its subsidiary Balli Steel Plc (Balli Steel) appeared in court charged with various fraud offences following a three-year investigation by the Serious Fraud Office.
Serious Fraud Office Investigation | Rosenblatt’s Financial Crime Team
The Serious Fraud Office charged Nasser Alaghband, Balli Steel and Balli Group’s Chief Executive, with two counts of fraudulent trading in the carrying on of those businesses with the intent of defrauding creditors. David Spriddell, Finance Director of Balli Steel and Balli Group is charged with the same offences. Nasser Alaghband faces six additional counts of conspiracy to defraud various financial institutions.
Further charges were also brought against Louise Worsell and Melis Erda, who were both members of Balli Steel’s Executive Committee. They each face one count of fraudulent trading in the carrying on of the businesses of Balli Steel with the intent of defrauding creditors. Melis Erda is also charged with six counts of conspiracy to defraud various financial institutions, while Louise Worsell faces five counts of conspiracy to defraud.
Balli Group, a British-Iranian commodities trader, was founded in 1991. In 2010 it was fined $15m in relation to the illegal export of aircraft to Iran by another of its subsidiaries.
The charges of fraud relate to allegations concerning letters of credit and documents issued by banks to fund the purchase of steel.
The latest developments are the result of an investigation that began with several arrests made by the Serious Fraud Office in 2017 after the appointment of administrators, Deloitte in 2013. At the time it collapsed, Balli Group and its subsidiaries owed an estimated £835m to unsecured creditors. Deloitte have assisted the Serious Fraud Office with its investigation.
Criminal Proceedings | Rosenblatt’s Financial Crime Team
The four individuals appeared at Westminster Magistrates’ Court on 29th September 2020 and are due to appear at Southwark Crown Court on 27th October 2020.
The Serious Fraud Office also announced it intended to charge Vahid Alaghband with two counts of fraudulent trading and one count of conspiracy to defraud. He will appear at Westminster Magistrates’ Court on 22nd October 2020.
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