Audits of Gupta Firms Probed by U.K. Financial Watchdog

(Bloomberg) -- U.K. regulators opened four investigations in relation to the statutory audits by London-based King & King of companies in Sanjeev Gupta’s GFG Alliance.

The Financial Reporting Council said Wednesday that the probes will focus on the consolidated financial statements of Liberty Speciality Steels Ltd., Alvance British Aluminium Ltd., Liberty Steel Newport Ltd. and Liberty Performance Steels Ltd.

The announcement comes as GFG offices were targeted last week by U.K. fraud prosecutors investigating allegations of money laundering, in an escalation of a sprawling, cross-border probe. In France, criminal investigators also raided GFG’s Paris offices and inspected the premises of an aluminum smelter in Dunkirk formerly owned by Gupta.

Sanjeev Gupta’s Offices Targeted by U.K. Fraud Prosecutors

A GFG spokesperson said that none of the alliance’s entities or individuals are the subjects of the FRC investigation.

“We recognize the importance of strong audit practices and have been evolving our corporate structure and governance as we continue our efforts to restructure and refinance our portfolio,” the GFG spokesperson said.

Representatives at King & King didn’t immediately respond to a request for comment.

The FRC said in its statement that the decisions to open the audit probes were made on Feb. 22.

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