Fraud inquiry into car leasing firm Raedex

A CAR leasing firm is being investigated by fraud officers after it went bust owing £26m to hundreds of savers lured in with the offer of returns as high as 11pc.

Raedex Consortium – whose boss Reginald Larry-cole has written a book on ethical capitalism – is facing inquiries from the Serious Fraud Office (SFO) following its collapse last month.

The firm’s main brand Buy 2 Let Cars was advertised on television and Twitter as an alternative for savers tired of “stagnating savings and low interest”.

But it went into administration in March after being barred from entering into new leases by the Financial Conduct Authority.

SFO officers raided two homes on Thursday in connection with the case, while one person has been arrested and released following interviews pending further investigation. A second person has been interviewed by the SFO. Neither has been named.

Raedex secured cash from retail investors and used the money to buy cars. It then leased these vehicles out, often to drivers with a poor credit history, and used income from leases and car sales to pay the investors back.

Raedex’s joint directors are Scott Andrew Martin and Mr Larry-cole. According to Companies House, Mr Larry-cole owns 75pc or more of Raedex Consortium.

RSM, administrators to Raedex, declined to comment. Mr Larry-cole could not be reached for comment.