One person has been arrested and a second person has been questioned by police as part of a new fraud investigation into Raedex Consortium – the parent company of defunct lending platform Buy2Let Cars.
The arrest came after the Serious Fraud Office (SFO) launched an investigation into Raedex Consortium for running an unauthorised customer investment scheme.
As part of the investigation, the SFO, the National Crime Agency (NCA) and the City of London police searched two premises in connection to the scheme and arrested one person on Thursday 8 April.
The unnamed person was interviewed and has since been released, pending further investigation. Another person has also been interviewed but not arrested.
On 15 March, Buy2Let Cars went into administration. Graham Bushby and Matt Haw of RSM were appointed as joint administrators.
Buy2Let Cars had been operating since 2012. The business leased cars to key workers with poor credit scores, in the understanding that their job security acted as a guarantee of their ability to meet payments. The company installed a lock in each leased car, which would prevent the car from starting if a payment was overdue.
In an interview with Peer2Peer Finance News last year, founder and chief executive Reginald Larry-Cole said: “We service the credit market, but we do it in a way that our customers are giving us five-star reviews on Trustpilot, in an industry where they are used to getting ripped off.
“Our margins aren’t high, but we focus on fantastic products and pay a premium to our funders, we look after our staff well, our lessees get a premium product with a premium service, and our funders get a great return.
Both Larry-Cole and RSM have been approached for comment.