A BIODIESEL company under investigation by the Serious Fraud Office has called in administrators.

International accountancy and advisory group Mazars has lodged a petition to have Worldwide Bio Refineries (WBR), based in Newton Aycliffe, County Durham, placed into administration.

The Serious Fraud Office is examining the company's dealings as part of an investigation called Operation Affair.

Mazars said it could not comment about WBR's financial situation - but confirmed it had been contacted by the Serious Fraud Squad and appointed as managing receivers of the firm.

A spokesman for London-based Mazars said: "We have lodged a petition to have the company placed into administration and there will be a court hearing to allow that to happen."

The hearing had been due to take place today but was adjourned to an undisclosed date.

The Serious Fraud Squad is investigating WBR amid fears that shares in the company may have been sold to investors as part of a "boiler room scam".

In such a scam, bogus share dealers dupe investors into buying stock at hugely inflated prices.

Investors had contacted the Serious Fraud Squad after buying thousands of pounds worth of shares in WBR from several unbrokers not regulated by the FSA, including Anderson Consultants and Allied Advisory.

WBR was set up in 2003, but according to Companies House, accounts due in February have not been produced. The firm's website has been removed from the internet.

The company had pledged to increase turnover to a nine-figure sum and open five biodiesel plants by the end of this year.

Last night, Darlington firm Ward Bros Holding, which owns the 50,000 sq ft premises occupied by WBR on the Heighington Lane Business Park, said it was owed more than £30,000 by the company.

General manager Stan Towler said: "They (WBR) had been paying rent three months in advance but we haven't been paid anything for the past nine months. We are owed in excess of £30,000.

"We got a court order for them to vacate the premises by August 15. We got the bailiffs on to them and applied for a warrant, but we were told the company had called in administrators."

The Northern Echo has not been able to contact director Ray Johnson.