Pair bailed in £50m fraud probe

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Two men arrested over a suspected fund management fraud worth more than £50m have been released on bail.

The men, aged 40 and 43, were arrested in dawn raids on suspicion of conspiracy to defraud, money laundering and fraud by misrepresentation.

The probe is linked to Kenneth Peacock Consulting, John Anderson Consulting and Business Consulting International.

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

'Unlawful deposits'

A third suspect is due be arrested by appointment.

City of London Police carried out the dawn raids at addresses in London and Surrey on Thursday.

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

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.