Friday, March 11, 2011

Yachts, glamour, greed and Caprice: The playboy lifestyle of billionaire brothers arrested over bank collapse

Living the high life of super yachts and model girlfriends, Robert and Vincent Tchenguiz's flamboyant and aggressive business reputation was also matched by their decadent lifestyle.

With a £4bn fortune to play with, they lived the playboy lifestyle, with beautiful women on their arms, and champagne flowing.

Robert dated model Caprice and was even romantically linked with Princess Diana, but settled with health guru Heather Bird, from whom he is separated.

Dates: Robert Tchenguiz went out with model Caprice and was even linked with Princess Diana

Dates: Robert Tchenguiz went out with model Caprice and was even linked with Princess Diana

High life: Vincent Tchenguiz snuggles up with two attractive female friends on his yacht

High life: Vincent Tchenguiz with two attractive female friends on his yacht

However, the couple still occupy a property close to the Royal Albert Hall, while Vincent has a home close to the U.S embassy in Mayfair.

And property was Vincent's main focus as they built up their empire, the older of the two brothers at one stage owned or managed 300,000 homes.

Robert, meanwhile, focused on other interests as they invested in countless well-known names including Odeon cinemas, the Slug and Lettuce chain of bars and Somerfield supermarkets

Party time: The brothers were hoping to hold a Champagne reception on board one on of their yachts on the night they were arrested

Party time: The brothers were hoping to hold a Champagne reception on board one on of their yachts on the night they were arrested

Caprice was one of the numerous glamorous women who spent time partying with the brothers

Caprice was one of the numerous glamorous women who spent time partying with the brothers

The Tchenguiz brothers seemed to come from nowhere and were identified with the boom years leading up to the banking crash. They were in deal after deal.

But yesterday it all came crashing down as they were arrested by investigators probing the collapse of the Icelandic bank Kaupthing.

The pair were held during simultaneous dawn raids in London and Reykjavik amid claims they withdrew vast sums of cash just days before the crisis broke.

Even as police knocked on their doors yesterday morning they were preparing to stage a champagne party on their super-yacht at a prestigious trade fair in the south of France.

The high-rolling businessmen – once ranked among the richest in Britain – were questioned over the collapse of the Icelandic bank in October 2008.

And now all eyes are on the Mipim property conference in Cannes to see if they will make an appearance.

The brothers built up their empire specialising in property and leisure that rode the crest of the boom wave.

Now Investigators at the Serious Fraud Office (SFO) want to know what happened immediately before the demise of Kaupthing.

Questions remain over how some were able to withdraw funds in the days before the bank’s catastrophic collapse.

Investigators are also looking at why some clients were able to take large loans backed with minimal collateral and deferred interest payments. Among them is Robert, who borrowed around £1.25billiion which he used to buy stakes in Sainsbury and pub group Mitchells & Butlers.

Stunning spouse: Robert Tchenguiz with pretty wife Heather Bird

Stunning spouse: Robert Tchenguiz with pretty wife Heather Bird

Playboys: Tycoons Robert (left) and Vincent Tchenguiz lived the lifestyle, but it are now being quizzed over alleged dealings with collapsed Icelandic bank Kaupthing

Playboys: Tycoons Robert (left) and Vincent Tchenguiz are being quizzed over alleged dealings with collapsed Icelandic bank Kaupthing

The Iranian-born brothers were arrested as part of an international operation involving the SFO and City of London Police.

More than two dozen investigators poured into their multi-million pound offices in Curzon Street, Mayfair, shortly before 7am yesterday morning.

A stream of smartly dressed employees was turned away as officials carrying cutting equipment, video cameras and evidence bags gathered inside.

One search focused on the fifth floor of Leconfield House, the base of investment vehicle R20, set up by Robert.

Connections: Vincent Tchenguiz with friends at the Tory Summer Ball in 2008

Connections: Vincent Tchenguiz with friends at the Tory Summer Ball in 2008

Robert Tchenguiz & Heather Bird
Robert Tchenguiz with his wife Heather Bird

Glamorous: Robert Tchenguiz with his wife Heather

Riches: Vincent Tchenguiz beside his Rolls Royce with a personal numberplate

Riches: Vincent Tchenguiz beside his Rolls-Royce with a personalised numberplate

Collapse: Icelandic bank Kaupthing

Fall: Icelandic bank Kaupthing invested heavily in UK property before going bust

The second took place a stone’s throw away at Vincent’s Consensus Group, housed in a block sandwiched between Curzon Street and Park Lane.

Forensic experts spent most of the day creating a copy of all the information held on computer servers at the two businesses.

Five other men aged between 42 and 54 were arrested in London. A further two suspects aged 42 and 43 were held in Reykjavik.

The brothers are thought to have been left heavily exposed to the failure of Kaupthing as they were among the bank’s largest clients.

They are seeking to get a £2billion lawsuit filed against the bank and to be recognised as creditors, despite owing it millions in loans.

Detectives remove evidence from Curzon Place offices of the Tchenguiz brothers following the dawn raids

Detectives remove evidence from Curzon Place offices of the Tchenguiz brothers following the dawn raids

Their offices at Leconfield House were guarded by police today while the property magnates were said to be 'co-operating fully'

Their offices at Leconfield House were guarded by police today while the property magnates were said to be 'co-operating fully'

Kaupthing had a significant operation in Britain and its collapse left a string of creditors owed money, including councils, police forces and charities. The Tchenguiz brothers said they were ‘co-operating fully’, adding they were confident of being ‘cleared of any allegation of wrong-doing’.

In a statement, the pair said they were being questioned over ‘matters relating to our relationship’ with the bank.

An SFO spokesman said: ‘This is a complex investigation. We have been working closely with the Icelandic special prosecutor’s office to ensure that comprehensive and robust investigations are conducted.’

Last year, an official Icelandic report criticised the extent of Kaupthing’s loans to Robert and linked companies.The SFO has been helping the Icelandic government in a wide-ranging inquiry into its country’s banking activities since February 2009.

Kaupthing, alongside Landsbanki and Glitnir, failed in the space of a week the previous year. Last night a spokesman for the Tchenguiz brothers said they had been released but said he could not provide any further details.

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