Fraud suspect stopped from travelling

Sally Chidzoy
BBC home affairs correspondent

Police are investing a high-yield investment scheme

A suspect in what is alleged to be the UK's biggest Ponzi fraud scheme has been stopped from travelling to New Zealand after police seized his ticket.

Kenneth Peacock, of Virginia Water, Surrey, was told by City of London detectives that his ticket was an asset which he was not allowed to dispose of.

The police have secured a freezing order against Mr Peacock, Kautilya Nandan Pruthi and John Anderson.

A scheme which promised returns of up to 13% a month is under investigation.

The police cancelled the flight tickets with the agents and arranged for a refund to be paid into a nominated account they have set up as part of their investigation.

WHAT IS A PONZI SCHEME The fraud was named after Italian immigrant Carlos (Charles) Ponzi who set up schemes in Boston and Florida in the 1920s Criminals offer investors high returns over a short period of time Some of that money pays fake returns to other investors The rest of the money is used to fund the lifestyles of the criminals The fund collapses when people stop joining or too many existing members withdraw funds Madoff accepts 150-year sentence

Mr Peacock, Mr Pruthi and Mr Anderson were arrested on 21 May.

Police are investigating a high-yield scheme in which hundreds of investors, including sports stars and celebrities, collectively invested £84m into Knightsbridge-based Business Consulting International (BCI).

The company offered investors returns of up to 13% a month.

The freezing order restricts the three suspects to living on £250 per week reasonable living expenses.

The allowance was reduced from £1,000 per week following an application to the court by police.

The order also requires the three men to disclose all assets worldwide.

A spokesman for City of London Police told the BBC they could not comment on the case.