British police have arrested a City trader on suspicion of money laundering, as part of an investigation into a reported 40 million pounds ($87 million) investment fraud.
The 60-year-old man from Essex was arrested on Monday by officers investigating GFX Capital Markets, a currency fund that recently stopped trading, a spokeswoman for City of London police said on Thursday.
He was arrested "on suspicion of money laundering and Financial Services and Markets Act offences. He has since been released on bail'', she said.
The Times newspaper named the arrested man as Terry Freeman, a 60-year-old director of GFX Capital Markets.
The police spokeswoman would not comment on the scale of the suspected fraud except to say that it was "substantial''.
The Times said about 40 million pounds of investors' money was involved, in what is thought to be the biggest such case in Britain since the credit crunch hit last year.
City of London police, which operate in London's financial district and specialise in economic crime, appealed for GFX investors "with concerns about the company'' to contact them via an application form on their website.