The Serious Fraud Office (SFO) today announced it was opening a criminal investigation into Nicholas Levene, the bankrupt City trader.

Mr Levene, who is nicknamed Beano and is the former vice chairman of Leyton Orient Football Club, is alleged to owe clients £200 million and is already being investigated by Deloitte, the accountancy firm.

The SFO said today: "The SFO, having received complaints about the business activities of Mr Nicholas Levene, has now opened a formal criminal investigation."

It added: "This also follows complaints received by the Metropolitan Police Service, with which the SFO has been liaising."

A 45-year old man voluntarily attended an interview under caution at the SFO on 15 October and was released without charge pending further enquiries.

Mr Levene had been previously been reported as missing.

The SFO also urged anyone who knew him to come forward. "The Serious Fraud Office would like to hear from persons who believe they have any information that might help the SFO with its enquiries," it said.

Mr Levene had been promising high returns to investors, who are thought to include Richard Caring, the rag trade entrepreneur and owner of The Ivy as well as Brian Souter and Anne Gloag, founders of Stagecoach.

IG Index is also believed to be suing him for money he owes them for a large spread bet he made.

One of Israel’s best-known basketball figures Moni Fanan, 63, was this week found hanged said to be after bad financial investments made through Mr Levene's company left him $20 million (£12 million) in debt, according to his friends.

The SFO number to call is 0207 239 7388.

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