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Boohoo Share Price Slips 5% on links to money laundering garment network

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Nigel F

Shares of Boohoo (LON: BOO) slipped around 5% on Tuesday after the company and Selection Fashion were both linked to Leicester-based group firms that are involved with money laundering and VAT fraud.

According to BBC Radio 4, a director of one company in Leicester, Rostum Nagra, was accused of stealing a firm belonging to a business associate. He then, allegedly, transferred all assets to his own company Rocco Fashion Ltd.

According to the judge in this civil case, Nagra created a “fraudulent scheme to launder cash for his own benefit”. This occurred over a “prolonged period” with “very substantial amounts” of money.

Boohoo confirmed it cooperated with T&S, one of the companies mentioned in this case. According to Boohoo, they have selected an auditing firm to map out its supply chain.

“This work is well under way and once it is completed we will be publishing a list of all of our UK suppliers,” Boohoo said in a statement to the BBC. 

Boohoo share price fell on Tuesday after being linked to “extraordinary” money laundering garment network

Boohoo share price fell nearly 6% before erasing more than half of these losses to trade at 340p, or 2.02% on the day. 

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Nigel F
Nigel F
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Nigels tiefes Verständnis der Finanzmärkte basiert auf über 10 Jahren Erfahrung. Nigel wurde bisher zweimal von der FCA (Financial Conduct Authority) autorisiert und hat in der letzten Zeit eine Finanz-Brokerage Firma besessen und verkauft. Er liefert hochaktuelle Analysen und Einsichten in die Finanzmärkte und in die allgemeine Wirtschafts- und Währungspolitik des Vereinigten Königreichs, der USA, Europas und Asiens.