The Serious Fraud Office (SFO) has closed its investigations into the functioning of the troubled WSD Global Markets Limited and related Companies.
The investigation began in October 2010 following complaints from overseas and New Zealand regulatory authorities.
SFO Chief Executive Adam Feeley said that the investigations revealed that the complaints related mainly to debts arising out of deposits with WSBC, a bank formerly domiciled in the Cook Islands, and placed in Judicial Management by the Cook Islands’ Courts following termination of its Cook Islands banking licence.
While there was some misunderstanding over the identity of the company within the WSD Group that owed the obligations and the terms upon which they were owed, the investigation concluded that these were commercial issues.
The SFO did not identify material evidence to suggest that the misunderstanding arose from fraudulent activity, Mr Feeley said.
“The fact that persons have not had their debts repaid is not in itself fraud. This, coupled with some considerable difficulties in securing sufficient cooperation with many of the overseas complainants, has prevented us from taking this matter any further,” he said.
Mr Feeley said the SFO had only investigated nine specific complaints concerning WSD and its related companies.
“The decision not to take the investigation further should not be interpreted as an approval or endorsement of the WSD businesses. The only message taken from the SFO’s action should be that in relation to the specific complaints looked at the evidence available was not sufficient to support the laying of criminal charges,” he said.
