A City trader has been arrested by police investigating an investment fraud involving a reported £40 million.
Terry Freeman, 60, was taken into custody at his home in Buckhurst Hill, Essex, on Monday.
According to The Times newspaper, as much as £40 million of investors' money is involved.
A police spokesman said: "A 60-year-old man was arrested on February 9 by officers for the City of London Police's Economic Crime Department on suspicion of money laundering and Financial Services and Markets Act offences.
"He has since been released on bail.
"The ongoing investigating centres on GFX Capital Markets Ltd, a city-based company that has recently stopped trading."
He would not comment on the scale of the fraud except to say that it was "substantial".
The case is believed to be the first of its scale since the recession started in Britain.
Police are asking concerned investors to complete a detailed questionnaire from their website specifying how they came across GFX Capital Markets Ltd and how they believed their money would be handled.
Telephone calls to the firm's City of London offices were unanswered.
