The Serious Fraud Office has launched an investigation into failed finance company South Canterbury Finance over possible fraudulent transactions.

The investigation will focus on several party loans which may not have been disclosed to investors or the Crown, and could have influenced South Canterbury’s coverage under the Government’s Retail Deposit Guarantee Scheme.

The SFO is already investigating several entities owned by Allan Hubbard, including Aorangi Securities. The latest probe is unrelated.

The National Business Review has found itself caught up in the South Canterbury debacle.

Serious Fraud Office served the NBR papers on Wednesday demanding that it hand over documents and recordings relating to its own investigation of South Canterbury Finance, particularly its dealings with the Auckland Hyatt Regency Hotel.