Britain's Serious Fraud Office has dropped its probe into property tycoon Robert Tchenguiz and his role in the collapse of Icelandic bank Kaupthing, bringing to a close a lengthy and embarrassing investigation.
The SFO said there was insufficient evidence to continue with its investigation into suspected fraud at Kaupthing in the UK before the bank's collapse at the height of the credit crunch.
David Green, the new SFO chief, had already dropped the probe into Robert's older brother Vincent in one of his first tasks earlier this year, but decided to continue the investigation into Robert.
In a statement Robert Tchenguiz said he welcomed the SFO's decision.
"I recognise the SFO have an important role to play in investigations of this nature, and have done my utmost to assist them in any way I can. I look forward to closing this chapter and getting on with business," he said.
The agency has faced severe criticism for its handling of the case, which began when the brothers were arrested in March 2011 in dawn raids at their homes and offices.
In July two top judges slammed the agency, already accused of "sheer incompetence" in the investigation, for obtaining search warrants unlawfully, while Robert Tchenguiz has said he would seek damages and bring proceedings against the agency for his arrest last year.
The investigation stemmed from the brothers' dealings with Kaupthing, which they tapped for large loans shortly before it buckled in the 2008 financial crisis. British retail depositors lost millions in the collapse.
The SFO also said it would continue its close cooperation with Reykajavik's Special Prosecutor's Office, which continues with its own probe into the bank's collapse.
