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Suspicion of Sanjeev Gupta bills used on Greensill loans worries fraud

Suspicion of Sanjeev Gupta bills used on Greensill loans worries fraud

Sanjeev Gupta’s Greensill Capital loans, which were later sold to Credit Suisse investors, were made on suspicious invoices that sparked suspicion of fraud.

Revelations are likely to put more pressure on Gupta, who was once considered a “savior of steel” by politicians when he rescued metal from Wales to Australia, but is now struggling to maintain his rough industrial empire.

Greensill fell last month, a corporation and political scandal Former UK Prime Minister David Cameron for lobbying on behalf of the company. They are suspended investors of $ 10 billion in Credit Suisse funds to lose losses Gupta in corporate loans.

The Financial Times has seen invoices issued by Gupta’s Liberty Commodities trading group to Greensill in exchange for money, including documents showing that they have sold products to four European metal companies: KME Germany, RPS Siegen, Voestalpine Böhler Edelstahl and Salzgitter Flachstahl.

All of these companies refuse to do business with the Gupta group. “We have nothing to do with freedom,” said Ulrich Becker, KME’s general manager. “In the past we didn’t negotiate with them, now we don’t negotiate with them and we won’t negotiate with them. We are copper producers and we don’t know what we could buy from them either.”

FT last week revealed Greensill Capital administrator Grant Thornton was unable to verify some of the invoices because he contacted the companies listed as the debtor of the bankrupt company.

One of the companies, a German scrap business called RPS Siegen, told FT that it had never negotiated with Gupta. Steel tycoon later he told FT that the company was “identified as a potential customer” and that funding was provided on that basis.

However, one of the bills seen by the FT is the Liberty Commodities bill submitted to Greensill, which is that the Gupta trading company sold nickel to RPS.

Greensill credited the loans to Gupta to Credit Suisse funds, which listed the receivables below – or the money received on the bills. Six European metal companies named in Credit Suisse’s fund accounts – RPS Siegen, Amag Austria, KME Germany, Salzgitter Flachstahl, Voestalpine Böhler Edelstahl and Trimet Aluminum – have confirmed to FT that they have never traded with Liberty Commodities.

It is the clearest sign that there may be false documents at the heart of the Greensill scandal. Swiss bank executives are increasingly concerned that their customers may be victims of fraud, according to people who know their thinking.

Responding to questions about suspicious invoices, GFG said: “Many of the agreements funded by Greensill with its customers, including some GFG Alliance companies, were future collection programs, sometimes described as future collections. Within these programs, Greensill he chose and approved companies that could do business with his opponents in the future. “

The GFG refused to say why the bills for the trade relationship were just “prospective”.

Suspicions have been raised after the FT revealed on Monday similar web domains for different commodity trading houses were registered in an email address of a GFG employee.

Gupta’s GFG Alliance, a loose conglomerate of its metals business, was one of Greensill’s biggest customers until it collapsed last month, one of the UK’s most prestigious financial technology companies.

Last year Greensill was trying to raise capital in a $ 7 billion valuation. Former Prime Minister Cameron, a consultant to the group, had repeatedly planned to make millions of dollars in the company, now worthless.

Greensill did not need to confirm the veracity of the invoices under the terms of the “accounts receivable” facility with GFG.

Credit Suisse, Greensill and its administrator Grant Thornton declined to comment.

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