Arrests in Spain over '£370m fraud'

The five Spaniards and one Argentinian were detained in Spain as part of a long-running Serious Fraud Office investigation in relation to a company which was formerly listed on the AIM section of the London Stock Exchange.

Spanish police said the arrests in Madrid, Barcelona and Elche on January 21 were linked to an alleged asset fraud in 2003.

The SFO investigation began in November 2005 after Langbar International (formerly Crown Corporation Ltd) issued a statement to the stock market announcing it could not "establish the existence of, nor verify its entitlement to" around £370 million held in Dutch and Brazilian banks.

British investigators from the Serious Fraud Office (SFO), with the help of Spanish authorities, carried out searches of properties in Spain last week. The SFO said the ages of the arrested men ranged from 56 to 76.

An SFO spokesman said: "Search and arrest operations were undertaken by the Spanish national police together with the economic crime and money laundering group, the superior chief police of Catalunia with the support of the fraud unit Udes Madrid and the local police of Elche (Alicante) alongside SFO investigators of the SFO and City of London Police last week at four residences and two business premises in Madrid, Barcelona and Alicante.

"Six people were arrested and interviewed in relation to the SFO investigation into Langbar International.

"As part of the ongoing investigation into certain individuals previously associated with Crown Corporation Ltd, now Langbar International under new management, the SFO obtained collaboration from the Cuerpo Nacional de Policia and a mutual legal assistance procedure to undertake searches, arrests and interviews. The operations were co-ordinated by Crime Court 24 of Barcelona."

When the SFO began its investigation in 2005, Langbar had already requested the suspension of its shares. Later that year, the company announced a new board.

No-one from Langbar was available to comment but a statement on the company's website reads: "The present board of Langbar International Limited is determined to discover exactly what has transpired concerning company funds and to pursue their recovery. Our aim is to restore value for shareholders to the maximum that can be achieved."