SFO investigates Keydata and Lifemark

The Serious Fraud Office has opened an investigation into Keydata and Lifemark.  

The SFO said it was focusing its investigation on the activities, control and ownership of Luxembourg-based life settlement vehicle Lifemark. It has also begun to probe Keydata’s role in marketing and selling products underpinned by Lifemark. 

Keydata was run by Stewart Ford, the founder of Keydata Investment Services and Lifemark (pictured). The FSA has investigated Ford over his management of Keydata, which was pushed into administration in June 2009. 

The SFO has also traced a sizeable proportion of the £103 million misappropriated from around 5,000 investors who bought Keydata Secure Income Bonds. ‘The SFO has not traced the ultimate destination of all SLS funds but a sizeable proportion of funds has been traced,’ it said. 

The SFO confirmed that controversial businessman David Elias was involved in the liquidation of assets from SLS Capital, the life settlement vehicle which backed Keydata Secure Income Bonds.  

‘Assets were subsequently liquidated and funds were misappropriated in order to meet other business needs of David Elias, the then ultimate beneficial owner of SLS, and thus to the detriment of Keydata and other investors,’ stated the SFO.   

Overseas investors who also put money into SLS Capital believe they have traced the missing money to Elias’ last business venture, which was a carbon credit trading scheme based in Brazil. Elias, who lived in Malaysian tax haven Labuan for the last years of his life was believe to have died on 8 May.

The SFO also identified a series of flaws with the business model of SLS Capital, which included not taking out hedging against the currecny risk posed by US dollar denominated life policies.