The Serious Fraud Office (SFO) has closed its investigation into Keydata Investment Services after failing to track down £103 million of missing funds.
Keydata was declared insolvent and shut down by the Financial Services Authority (FSA) in June 2009, after it was discovered the firm was wrongly selling investments as tax-free ISAs (individual savings accounts) when they in fact didn’t qualify.
When Keydata was then unable to pay the £5 million fine demanded by HM Revenue & Customs, it was put into administration under the control of PricewaterhouseCoopers (PwC).
When PwC started to investigate Keydata’s accounts however, many more skeletons began to emerge from the closet.
It turned out that £103 million of savers’ money that was supposed to be invested with the Luxembourg-based firm SLS Capital had disappeared.
The SFO had been on the trail of assets belonging to SLS Capital, the Luxembourg company controlled by David Elias, following Keydata’s collapse into administration in 2009.
Elias, who fled to Singapore, died in 2009.
A statement on the SFO website said: ‘Substantial efforts have been made to trace the assets of SLS Capital SA and David Elias in overseas jurisdictions since September 2010.
'These efforts have not met with any success and it is considered unlikely that the situation will change. Accordingly, the SFO is closing this case and will not be pursuing any further enquiries in relation to this matter.’