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Eight people were arrested today in connection with a suspected £40m mortgage fraud.
The seven men and one woman were held following raids on six residential addresses in Sussex and north London, City of London police said. They are being questioned on suspicion of money laundering and conspiracy to defraud.
A spokesman said: "Officers from City of London police arrested eight people across the south-east in connection with a suspected £40m mortgage fraud."
The inquiry centred on Eastbourne Financial Services Ltd, a mortgage broker based in East Sussex. The police spokesman said the business is in liquidation and is no longer authorised by the Financial Services Authority (FSA).
The FSA has described mortgage fraud as a "serious and widespread problem".
Last summer it set out its approach for tackling the problem, with measures including targeted visits to mortgage brokers to check the quality of their systems, and encouraging better information sharing. A succession of brokers have been banned for home loan fraud during the past few months.
More details soon ...
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