Gary Hexley was arrested last week on suspicion of conspiracy to deceive his clients, West Midlands police have confirmed.
He and another individual, who was also arrested last week, have been held and interviewed by officers from the FSA, according to the Birmingham Mail.
Hexley’s collapsed property development firm, Sutton Coldfield-based Greenfield International, left 237 creditors with total debts of £2,077,426.05.
The 49-year-old financier was made bankrupt with liabilities of nearly £1m and banned and censured by the FSA following the firm’s closure, according to the Birmingham Mail.
Last week the FSA issued a statement saying it had taken action against two individuals suspected of providing financial advice when not authorised to do so and making misleading statements to investors.
“With the assistance of the West Midlands Police, the FSA executed search warrants on three premises in the West Midlands and two individuals were arrested.
“Nobody has been charged at this stage in connection with the FSA’s investigation, which is ongoing,” the statement said.
West Midlands Police officers executed the arrests, because the FSA does not have the power to detain people.
A West Midlands Police spokesman told the Birmingham Mail: “We accompanied the Financial Services Authority to execute two warrants as part of their investigations.”
The Financial Services Compensation Scheme is reportedly looking into whether Greenfield International investors are eligible for compensation.
