Two arrests in London fraud probe

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Detectives investigating a suspected fund management fraud worth more than £50m have arrested two men.

City of London Police held the men during three dawn raids at addresses in London and Surrey.

The investigation is linked to three firms: Business Consulting International, John Anderson Consulting and Kenneth Peacock Consulting.

Police want investors in the firms, frozen by the Financial Services Authority in 2008, to come forward.

Some of those involved in the companies are suspected of mishandling millions of pounds of investor funds.

A 40-year-old man was arrested on suspicion of conspiracy to defraud, money laundering and fraud by misrepresentation. He has been released on police bail.

A 43-year-old man arrested for the same offences remains in custody.

Anyone who has been in contact with these companies should get in touch with the police Jonathan Phelan, FSA

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.

Detective Inspector 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.

City of London Police asked anyone who has had dealings with the three consultancies to call 020 7601 6844.