Following a referral from the FSA, Business Consulting International (BCI), John Anderson Consulting and Kenneth Peacock Consulting are being investigated for allegedly mishandling millions of pounds of investor funds.
The raids took place early on Thursday morning in London and Surrey with the City of London police arresting a 43-year-old on suspicion of conspiracy to defraud, money laundering and fraud by misrepresentation. He remains in custody while a 40-year-old arrested under the same suspicions has been released on bail.
The City of London police expect a further arrest to be made in the coming days.
The FSA has also issued proceedings against the three individuals linked to the consultancies for allegedly taking unlawful deposits and running an authorised collective investment scheme.
City of London detective inspector David Manley says: “At this stage we would like to speak to as many of the investors as possible to maximise the opportunities for gathering evidence to provide a clearer picture to the investigation team.”
FSA head of enforcement Jonathan Phelan says: “We are working closely with the police to help investors who might have been victims of this alleged large scale fraud.”