The U.K. Serious Fraud Office (SFO) on Friday announced a fraud investigation into car leaser Buy2Let Cars and several other companies operated by Raedex Consortium.
The announcement comes a day after the SFO, with the assistance of the National Crime Agency and London police, arrested an individual following searches on two residential premises in connection with the probe. The individual has been released pending further investigation.
The companies under investigation include Buy2Let Cars, PayGo Cars, Wheels4Sure, and Rent2Own Cars. Investors and lessees of the companies can expect an update regarding the probe on May 10, according to the regulator.
The SFO did not provide further comment, citing a live investigation.
The U.K. Financial Conduct Authority (FCA) in February announced restrictions on Raedex to prevent the company from entering into any new car leases. The restrictions did not apply to existing leases for Raedex customers. The FCA cited concerns about the company’s finances and noted Buy2Let Cars, the company through which Raedex primarily operates, is not authorized with the regulator.
Raedex and Buy2Let Cars entered administration in March.