Serious Fraud Office denies dropping its inquiry into Robert Tchenguiz

The Serious Fraud Office has denied that it is poised to abandon its investigation into Robert Tchenguiz, despite releasing the property magnate from his bail conditions late last week. The SFO insisted on Sunday that the case remains live and ongoing, and dismissed as "speculation" reports that it would soon drop the whole inquiry. It also confirmed that it is not renewing bail conditions for Tchenguiz or the two other remaining suspects in its three-year investigation into the collapse of the Icelandic bank Kaupthing. The Mayfair businessman and his brother, Vincent, were arrested in March 2011 after raids by the SFO and City of London police. However, the SFO ended its investigation into the elder brother, Vincent Tchenguiz, in June 2012 ahead of a damning judicial review . A high court judge ruled that search warrants had been granted after the SFO presented "unfair and inaccurate" evidence. The brothers have indicated they will seek hefty damages. In a statement, the SFO said: "We stated in July following the judicial review ruling that we were continuing with the investigation and this remains the situation. The decision to release suspects from bail is not the same as changing their status." An SFO source said that the bail conditions had not been particularly onerous and it was not unusual for a suspect to remain under investigation even once bail was lifted. Tchenguiz's lawyers will still be obliged to notify the SFO of his long-term whereabouts. While the SFO promised to pursue the investigation with "renewed vigour and focus" after the judicial review verdict, its reputation has been battered by an error-strewn episode that may ultimately see no charges brought. Two of Britain's most senior judges criticised the SFO and called on the government to increase the funding of the agency, which pursues white-collar crime . "It is clear that incalculable damage will be done to the financial markets of London if proper resources, both human and financial, are not made available for such investigations and prosecutions," they said in July .