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Police bail pair arrested in £50 million fraud probe
22 May 2009Two men arrested over a suspected fund management fraud worth more than £50 million were bailed, police said today.
City of London Police arrested the men yesterday during three dawn raids at addresses in London and Surrey.
The investigation is linked to three UK-based financial consultancies whose operations were frozen by the Financial Services Authority (FSA) in 2008.
Business Consulting International (BCI), John Anderson Consulting and Kenneth Peacock Consulting are under police investigation.
Some of those involved in the companies are suspected of mishandling millions of pounds of investor funds.
A 40-year-old man and a 43-year-old man were arrested on suspicion of conspiracy to defraud, money laundering and fraud by misrepresentation.
A third suspect will be arrested by appointment later this week.
The FSA has also issued proceedings against three individuals linked to the consultancies for allegedly taking unlawful deposits and running an unauthorised collective investment scheme.
Det Insp David Manley, of City of London Police, said: "We are working in partnership with the FSA to tackle this complex investment fraud that involves hundreds of victims and losses suspected to run into tens of millions of pounds.
"It is vitally important for people who have been involved with, or suspect they could be a victim of BCI, John Anderson Consulting and Kenneth Peacock Consulting to contact the City of London Police as soon as possible.
"At this early stage we would like to speak to as many of the investors as possible to maximise the opportunities for gathering evidence to provide a clearer picture to the investigation team."
Jonathan Phelan, of the FSA, said: "We are working closely with the police to help investors who might have been victims of this alleged large-scale fraud.
"Anyone who has been in contact with these companies should get in touch with the police.
"People should also be careful to ensure that any firm they deal with is authorised. They can check if a firm is authorised to give investment advice on our website www.fsa.gov.uk."
:: City of London Police asked anyone who has had dealings with the three consultancies to call 020 7601 6844.
