LONDON - WAKK Street investor Bernard Madoff ordered his London-based company to transfer 100 million pounds (S$220 million) to his US firm just weeks before his arrest on suspicion of massive fraud, it was reported on Friday.

The Financial Times, quoting two former employees of the British firm Madoff Securities International, said Madoff called staff on Nov 12 and said he wanted to move the money, citing fears about the falling value of the pound.

He said he wanted to move 100 million pounds of the British firm's capital from gilts into US Treasury bonds.

US prosecutors on Thursday alleged Madoff was planning to send out cheques worth about US$173 million (S$255 million) just before his arrest on Dec 11, sparked when he allegedly confessed to running a US$50 billion pyramid scheme.

Sources told the FT that Madoff's money transfer request was not unusual, and said the British company received paperwork from the United States about the Treasuries purchase. Apparently there was no proof that bonds were bought.

There was no suggestion that the British firm did anything wrong.

Meanwhile, the Serious Fraud Office said on Thursday it had launched an investigation into Madoff's British activities. -- AFP