FOUR men have been arrested on suspicion of fraud in connection with the collapse of a fund which left investors – including Jersey residents – losing their life savings.

The men, who have not been named, were arrested in Guernsey this week before being released on bail pending further inquiries.

A criminal investigation was started in October, led by Guernsey’s Economic Crime Division, as part of a case with global links.

‘The arrests were undertaken at four separate addresses in the island, in connection with suspected offences of fraud by abuse of position and in respect of the provision of false or misleading, or recklessly furnishing information relating to the protection of investors.

‘Due to the ongoing nature of this investigation, we are unable to give any further details at this time,’ a Guernsey law enforcement spokesman said.

The Economic Crime Division is a joint Guernsey Police and Guernsey Border Agency unit.

When the work began, officers warned it was expected to be a long and complex case. In April, they said the case involved officers making inquiries in various jurisdictions across the globe.

The investment fund collapsed last summer after the Guernsey Financial Services Commission acted to close it down following regulatory action taken against Providence in the USA.

In September, Guernsey’s Royal Court was told that investors who put more than £37m into the collapsed investment business were unlikely to get any of their money back.

Investors from Guernsey, Jersey and the UK met administrators last October with some speaking of losing their life savings.

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