Kaupthing search widens

POLICE working on the investigation into Iceland’s failed Kaupthing Bank raided five addresses yesterday, including the bank owned by the family of former Tory Party treasurer David Rowland.

In a joint operation between the UK’s Serious Fraud Office (SFO), the Icelandic Special Prosecutor’s Office and Luxembourg police, more than 70 investigators searched three businesses and two residential addresses in Luxembourg.

The raids follow others earlier this month in Iceland and in London, where billionaire property entrepreneurs Robert and Vincent Tchenguiz were arrested and questioned. They were later released without charge and deny any wrongdoing.

The Rowland family bought the defunct Luxembourg branch of Kaupthing in 2009. Yesterday the bank stated it was “fully co-operating with the authorities”. It added: “The reason for the visit is not related to the activity of Banque Havilland and concerns the former Kaupthing Bank and ongoing investigations.”