Four arrests in metals fraud probe
THE metals fraud probe that has embroiled former Labour Cabinet Minister Jack Cunningham took a new turn on Tuesday night. American law enforcers arrested four metals traders on charges of running an alleged global fraud that cost banks more than $600m (£410m). The scheme is said to have been conducted through several companies including UK-based RBG Resources, formerly Allied Deals.
Multi-millionaire Viren Rastogi, who runs RBG, hired Cunningham as a £25,000-a-year consultant.
A complaint from US Attorney James B Corney in New York said the four traders - Narendra Kumar Rastogi, Anil Anand, Manoj Nijhawan and Udhay Shankar - with other co-conspirators, stole millions of dollars of loan proceeds from banks.
RBG Resources in London is in provisional liquidation and has been raided by the Serious Fraud Office. RBG lists Viren Rastogi as chief executive. RBG operates in Romania, where it got £25,000 from the UK taxpayer to buy a smelter. It also runs a mine in Bolivia.
