Former MP in fraud probe bailed

David Prior was MP for North Norfolk from 1997 to 2001

An ex-MP has been arrested and released on bail by police investigating allegations of financial irregularities at a psychiatric hospital in Norfolk.

David Prior, son of former Conservative cabinet minister Jim Prior and chairman of Cawston Park Hospital, was arrested with three other men.

It follows an inquiry by the NHS Counter Fraud and Security Services into Cawston Park.

Mr Prior's solicitors said their client was cooperating with the investigation.

Items were seized from the homes of those arrested and from an office of the company, which is part of the Chancellor Care Limited group.

'Minimum disruption'

Mr Prior, who is chairman of the Norfolk and Norwich University Hospital NHS Trust, was MP for North Norfolk from 1997 to 2001.

His solicitors, Gotelee and Goldsmith of Ipswich, said in a statement: "David Prior has given his full cooperation in the investigation being carried out.

"The allegations made are groundless. He is certain when the police investigation is concluded he will be entirely vindicated."

Det Ch Insp Chris Hobley added: "Whilst we are not elaborating further, we can confirm that we are working with other agencies to ensure minimum disruption to the patients at Cawston Park.

"This will be paramount throughout the inquiry."