AIB may have fallen foul of £56m property fraud

An alleged £56m (€60.1m) property scam over four years on the Allied Irish Bank is to be investigated, the Serious Fraud Office (SFO) in the UK said today.

An alleged £56m (€60.1m) property scam over four years on the Allied Irish Bank is to be investigated, the UK's Serious Fraud Office (SFO) said today.

The SFO and City of London Police raided three business and residential addresses in central London yesterday, although no arrests have been made.

The allegations centre on loans made by the bank to the main suspect to buy UK properties, based on fraudulently high levels of rents and lease lengths.

Other financial institutions may also have fallen prey to the alleged fraudsters, the SFO added.