Administrators launch fraud probe into GTE

Smith &
, administrator of collapsed broker
Global Trader Europe, have
launched an investigation of the company’s affairs, seeking any suggestion of
wrongful and fraudulent trading.

In a letter to a group of creditors, the administrator revealed it is also
looking into issues of whether there were any ‘transactions at an undervalue’ –
instances where the company sold assets below their real value before going into
liquidation, The Daily Telegraph reports.

To help with its investigations, Smith & Williamson has brought in top
City litigators Kirkland & Ellis and Macfarlanes.

However, Mark Trafeli, general counsel of GTE’s parent company New World
Trader, said Smith & Williamson’s latest update was ‘expected and very
ordinary… as the law requires due consideration of such matters in each and
every liquidation’.

Further reading:

story in The Daily Telegraph

Related reading