Britain's Serious Fraud Office last week has recovered £5.4 million towards a £20 million confiscation order by selling of a mansion belonging to one of UK's wealthiest Asian businessmen Virendra Rastogi. He was convicted and sentenced in 2008 for his role in a multi-million pound financial trading fraud.
The fraud was committed to support trading on the London Metal Exchange through a company structure based around RBG Holdings Limited. In August 2010 a £20 million confiscation order was imposed with the total sum recovered to be used to compensate the victims of the fraud.
In February 2013, following an application by the SFO's Proceeds of Crime Division, Rastogi was ordered to serve a further 2555 days (seven years) in prison as a result of his failure to pay the confiscation order.
At the confiscation hearing the court found that Rastogi's family home, which was held in the name of a trust fund, was beneficially his and considered it available to satisfy the order. Litigation, which was contested by the trust fund, to secure possession of the property, located in Orchard Court, London, was commenced in July 2013. Control of the property was subsequently removed from the trust fund by the High Court and the sale completed on the 15 May allowing the equity to be used to satisfy, at least in part, Rastogi's outstanding order. The total amount recovered from Rastogi is being used to compensate the victims of the fraud through the liquidator appointed over RBG Resources Plc.
