Fraud claims at troubled studios

The studios went into administration last October

Officers from Devon and Cornwall Police are investigating allegations of fraud related to the former South West Film Studios in Cornwall.

Police say they were contacted by the administrator for the St Agnes studios and an inquiry is now under way but declined to give more details.

The investigation is being carried out by the Economic Crime Unit.

The £5.7m studios, built with nearly £2m of European funding, have closed while a buyer is sought.

'No records'

The company behind the region's first film studio complex went into administration in October.

Built in 2002, the studio complex was one of the highest profile Cornish projects backed by Objective One, which channels European cash into the county's economy.

During the administration only one film, Irish Jam, has been made there and now there is not enough money to keep staff on.

Administrator Ian Walker, of Begbies Traynor, told the BBC's Inside Out programme he had found "no books and records" relating to the studio's accounts.

In response, London-based film producer Alex Swan, who set up the project, told the BBC: "Of course there are accounts.

"I'm not going to get drawn into a debate about this and I will speak to the administrator about this."