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The Serious Fraud Office (SFO) is considering charging Bernard Madoff's London operation under money laundering legislation.
Madoff, who has been accused of running a $50 billion (£35.2 billion) so-called "Ponzi" scheme by New York prosecutors, also had a small office in Mayfair.
The SFO launched a criminal investigation into his business in this country last month.
It is unclear whether the SFO has actually discovered evidence of money laundering, but legal experts say it could be easier and quicker to prosecute on these grounds rather than, say, fraud.
"Proving fraud can be difficult when you're dealing with complex structures and money flowing across different countries," said SFO spokesman Sam Jaffa.
Money laundering laws were originally introduced in this country to counter terrorism and drug barons. But they can be applied in any case where money was obtained illegally and passed through the UK.
While the SFO acknowledges that Madoff had legitimate operations in London, it is examining whether money was obtained fraudulently in the US and transferred here.
Reader views (1)
Er, and what will the fine be paid with? We certainly won't get Madoff over here to face the music, this Govt only uses rendition and extradition to the States, not from them. Mind you, it does allow other dodgy nationals to use our Libel laws and judicial system to prevent world wide exposure of potential crime.
- Alan, carlisle uk, 05/03/2009 16:11
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