UK authorities braced for wave of financial frauds

The SFO and City of London police expect a huge volume of frauds to be revealed in the coming months

LONDON - The head of the UK's Serious Fraud Office (SFO) has revealed the City of London will face a wave of financial frauds over the coming months, resulting from a number of investigations already underway.

Richard Alderman told UK newspaper The Independent that authorities are currently tracking a series of suspected rogue trading incidents, mortgage frauds and investment fraud scams - including potential for a "big ponzi scheme" similar to Bernard Madoff's $50 billion con operation discovered by US authorities in December 2008.

Bob Wishard, detective superintendent of the City of London Police fraud squad said: "The growing number of frauds in the City and the deepening recession has prompted speculation that Britain could soon see its first £1 billion fraud."

The SFO wrote to legal and accounting firms in December 2008 asking for whistleblowers to come forward about hidden financial crime.