Luxembourg Police join Kaupthing investigation

LONDON

Britain's Serious Fraud Office says that Luxembourg Police have carried out searches at three business premises and two residential locations in relation to an investigation into the 2008 collapse of Iceland's Kaupthing bank.

The operation follows dawn raids and the arrest of nine people in London and Reykjavik in March.

Britain's fraud office is investigating whether Kaupthing made false claims while trying to attract British investors to its "high yield" deposit account, Kaupthing Edge. It is also looking at why "substantial value" was taken out of the bank shortly before it collapsed at the height of the global financial crisis.

Among those arrested on suspicion of fraud in London were two of Britain's wealthiest entrepreneurs -- Robert and Vincent Tchenguiz.