SFO Drops Investigation Into Two Suspects in Kaupthing Probe

The U.K. Serious Fraud Office dropped its investigation into two men arrested during its probe into the collapse of Iceland’s Kaupthing Bank hf.

The agency declined to identify the individuals. The Daily Telegraph newspaper reported it was Armann Thorvaldsson, the Kaupthing’s U.K. Chief Investment Officer, and its former treasurer Gudni Adalsteinsson.

Two men arrested in the Kaupthing probe are “no longer suspects and police bail is to be canceled,” the SFO said in a statement.

The fraud watchdog last month ended its investigation into businessman Vincent Tchenguiz after admitting it had made errors in his arrest and the search of his offices. His brother Robert, also arrested in raids last year, is still being probed by the SFO in connection with Kaupthing loans. Both men are suing the SFO for damages over the raids.

To contact the reporter on this story: Kit Chellel in London at cchellel@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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