Bernard Madoff asked the UK operations of his company to transfer £100 million to his US business weeks before he allegedly confessed to running the world’s largest Ponzi scheme, according to employees at the British branch.

It is understood that Mr Madoff asked for the cash in November, saying that he was nervous about sterling weakening against the dollar.

Stephen Raven, the head of Mr Madoff’s British operation, yesterday declared himself a victim in the world’s largest fraud, after the Serious Fraud Office (SFO) initiated a formal investigation into the business he ran.

Mr Raven told The Times: “I am a victim; we’re all victims. We’ve all lost our jobs and it’s tragic. It’s tragic that so many other people have lost so much, and I fully accept that. It’s also tragic that a nicely run business in London has gone down.”

Mr Raven was speaking after the SFO fuelled suspicions of a British connection by announcing an investigation into whether anybody working for the UK arm of Mr Madoff’s business, known as Madoff Securities International (MSI), was knowingly involved in the scandal. The SFO kicked off its investigation into “UK victims and any criminal offences that might have been committed in the UK” a day after forensic accountants at Grant Thornton, the liquidator of Mr Madoff’s UK operation, handed it a report into the unit.

Mr Raven, 70, added: “I knew absolutely nothing about what Mr Madoff was doing. I had no idea at all. All we were doing was prop trading. We had no clients and no cash came in. When I heard about it, I couldn’t believe it.”

MSI, based in Mayfair in Central London, held about £100 million of assets, most of it in cash and government bonds, before it went into administration at the end of December. It is not directly connected to the US companies at the heart of the scandal, but was set up by the Madoff family to invest some of its wealth.

The SFO is thought to believe that at least one member of the 28 UK staff might have knowingly helped to recruit investors to the American funds.

“This is not some speculative expedition on the part of the SFO. There is sufficient concern that one or more persons may have committed criminal wrongdoing,” one source said.

The SFO has the power to levy huge fines.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive