Police arrest directors of collapsed forex firm
Police have arrested two former directors of Crown Currency Exchange, which collapsed in October owing customers £16m. Some individuals were left up to £400,000 out of pocket.
The men, who were arrested on dawn raids on their homes yesterday, are understood to be founder Peter Benstead, aged 68, who set up the business with his wife Susan in 2004, and fellow director Edward James, 70, who is a Conservative councilor and former Mayor of Glastonbury.
Devon and Cornwall police are holding one man at Camborne police station in the other at Yeovil police station. Both are believed to have surrendered their passports. No-one has been charged with any offence.
Detective Inspector Bean from Devon and Cornwall Police Serious and Organised Crime Branch said: "It is expected that this will be a protracted inquiry that may take many months. It is anticipated that there are approximately 13,000 victims."
Over 8,000 customers are thought to have lodged claims so far, including some who have lost between £100,000 and £400,000 each. Several customers used the company for large transactions such as property deals abroad, often ordering currency up to a year in advance at fixed rates.
Although the company was registered by the Financial Services Authority it was not covered by its compensation scheme, so none of those who lost cash have been able to claim their money back.
Lib Dem MP Tessa Munt led a debate on the collapsed company in the Houses of Parliament last year, when she raised concerns that clients might not have realised their money was not protected.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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