The Serious Fraud Office has made an arrest and raided two residential premises as part of an investigation into a company that operated a hire car investment scheme.
The SFO is investigating the activities of Raedex Consortium, which runs a string of companies including Buy2Let Cars, PayGo Cars, Wheels4Sure and Rent2Own Cars.
The SFO, which conducted the raids on Thursday with the assistance of the National Crime Agency and the City of London police, said it searched two residential premises in connection with the investigation.
The SFO said one person was arrested and interviewed, and subsequently released pending further investigation, and a second person was also interviewed. “As this is a live investigation, the SFO can provide no further comment,” it said.
The SFO said investors and lessees of the suspected fraudulent schemes can expect an update on the investigation on 10 May.
In March, Buy2Let Cars and its parent company, Raedex, entered administration, weeks after the Financial Conduct Authority told it to stop taking new business.
Buy2Let Cars promised annual returns of up to 11% to investors who lent the company a minimum of £7,000 over three years. It used the money to buy new cars, which it then leased to people with a poor credit history via Wheels4Sure. Investors received monthly payments over the term of the loan, with interest paid at the end of the term.
The FCA, which ordered Raedex to cease trading in February, citing “serious concerns” about its finances, does not regulate the leasing of cars via Buy2Let Cars.