FRAUD INVESTIGATION INTO COLLAPSE OF FLYGLOBESPAN DROPPED

The Serious Fraud Office (SFO) has announced its has dropped an eight-month investigation into credit card processing company E-Clear, widely blamed for the collapse of Scottish airline Flyglobespan. The SFO said there was “insufficient evidence” to pursue a prosecution against E-Clear. The company went into administration in January last year owing an estimated £127 million. A few weeks later Flyglobespan and parent company Globespan collapsed, leaving thousands of holidaymakers stranded abroad. Globespan’s receivers, PricewaterhouseCoopers (PwC), linked the airline’s collapse with the behaviour of E-Clear. The London company had withheld some £25m worth of Flyglobespan’s fares while negotiating to buy the