SFO launches criminal investigation into Levene

Serious Fraud Office launches criminal investigation into Nicholas Levene amid fears of client death

The Serious Fraud Office has confirmed it has started a formal criminal investigation into Nicholas Levene, the City financier whose clients fear multi-million-pound financial losses.

By Louise Armitstead
Telegraph, 21 Oct 2009

In a statement the SFO said it was reacting to "complaints" about Mr Levene's "business activities" and working with the Metropolitan Police. It said that "a 45-year-old man", assumed to be Mr Levene, "voluntarily attended an interview under caution at the SFO on October 15 and was released without charge pending further inquiries".

Mr Levene, who held several high-profile positions in the City and was vice-chairman of Leyton Orient Football Club until Monday, is suspected of running a questionable investment scheme. It is claimed he has taken millions of pounds from clients which he is now failing to return. It is estimated that he owes at least £200m.

The case took a tragic turn as it emerged that one of Israel's best-known sporting figures, who invested with Mr Levene, apparently committed suicide.

Moni Fanan, a former Israeli basketball player, turned manager, was found dead by his wife on Monday. Israeli newspapers have linked the death to Mr Levene, claiming Mr Fanan is had invested over £12m with the financier and had persuaded other sporting contacts to do the same.

Israeli reporters told The Daily Telegraph that Mr Levene had allegedly offered the sportsmen vast interest rates if they gave their cash to him. One basketball player claimed he was being paid as much as 3pc per month or between 30pc and 40pc interest a year in return for the cash. The source claimed Mr Levene had promised to be their "private bank."

Mr Levene, whose family home is in London, is well known in Israel where both he and his parents have a house. The financier is thought to be recovering from stress in the Priory clinic in north London.

He has had his asset frozen and been declared bankrupt. Deloitte has been appointed to realise his assets to repay creditors.