Fraud investigators today called on City employees and shareholders to “whistleblow” and come forward with evidence of corporate wrongdoing in the wake of the credit crunch.

The Serious Fraud Office (SFO) — which has written to leading accounts and legal firms — wants workers, former staff and shareholders to step up with information over suspected fraud in the current financial turmoil.

Richard Alderman, Director of the SFO, said: “Our objective is to ensure that we can bring offenders to justice as quickly as possible.”

The SFO is encouraging those with information to use its new online referral form, although it does not usually investigate cases with a value of less than £1 million.

Mr Alderman added: “What we have found in the past is that, at times of market turbulence, fraud is discovered, we find out what’s been happening as a result of the turbulence in the markets, and we also find that there is opportunity in those markets for more fraud.”

The organisation, which has a £40 million budget and around 200 staff, is targeting the sector as the SFO concentrates on three key areas.

As well as City fraud, the SFO will investigate overseas corruption and mass-marketed wrongdoing such as mortgage fraud and so-called “boiler rooms” — high-pressure sales operations that sell virtually worthless shares to unwitting investors and then vanish.

Its latest initiative comes after recent meetings in the US with the Department of Justice and the FBI enforcement agency.

The SFO is also understood to have held talks with its US counterparts and the Financial Services Authority over the alleged $50 billion (£33 billion) fraud by Wall Street investor Bernard Madoff, who was arrested last week.

Rod Fletcher, partner and head of the Business and Regulatory Investigations Team at Russell Jones & Walker.

“In an already unsettled financial global market it is inevitable that instances of fraud and corporate misconduct surface more readily than in times of boom.

“As a result of this economic climate, and with regulatory bodies like the FSA and SFO flexing their muscles, there will be more pressure on directors and other employees to identify suspicious activity.

“Individuals should ensure that they are aware of their personal obligations and accountability under the criminal law, and in particular the risks of exposure to investigation and prosecution, and should seek independent legal advice at the earliest opportunity”.

Sam Eastwood, a litigation partner at Norton Rose, the City law firm, said that companies were increasingly making voluntary disclosures to authorities such as the SFO, including establishing "hotlines" for employees to anonymously report suspicious activity.

Explore Law

• Columnists

• Law Panel

• Law Reports

• Student Law

Times Recommends

• The best legal yarns this Christmas
• Legal school 'earned £1m by exploiting bar course'
• Axe may fall on 5,000 more City lawyers