Photographer: Igor Sorokin/Getty Images

Currency Trader Arrested in U.K. Over Alleged Ponzi Fraud

London police said they arrested a currency trader suspected of involvement in a Ponzi scheme worth tens of millions of pounds.

The 59-year-old man, who police didn’t identify, was arrested in East Yorkshire on suspicion of fraud by false representation and money laundering. He is being questioned at a police station.

The alleged fraud led to 375 complaints from investors in the U.K., Thailand and Australia, police said in the statement. One group invested 4 million pounds ($6.2 million), while another individual provided 830,000 pounds. Ponzi schemes typically use money from new investors to pay existing ones, giving the illusion of trading profits.

The Yorkshire case came to light in December 2014 when the U.K. National Fraud Intelligence Bureau linked 70 fraud reports with a total value of about 10 million pounds, police said. Since then more losses have emerged and City of London Police took over the investigation.

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