Asset managers in fraud probe

City of London Police have launched a criminal inquiry into a firm at the centre of misselling scandal that left several high-profile former footballers, including Rio Ferdinand, nursing millions in losses.

The activities of Kingsbridge Asset Management, which was run by David Mckee and Kevin Mcmenamin, is being probed over allegations of fraud that has hit the ex-manchester United star and others.

The former professionals are thought to have invested in film and property schemes recommended by the duo, but which then turned sour when the footballers were slapped with tax demands following an HMRC crackdown.

The City of London Police said: “It is alleged management and staff including financial advisers conspired together to defraud a large number of company clients, resulting in significant financial losses.

“The company ceased trading in 2010, but it is believed there may be hundreds of people affected by this alleged activity and may be victims of fraud.”

Police are encouraging anyone who was a client of the company or associated companies between 1992 and 2010, and believes they have been defrauded, to come forward.

On Thursday, detectives from the City’s fraud squad arrested a 60-year-old man from Blackburn and two men aged 61 and 38 from Nottinghamshire on suspicion of conspiracy to defraud in connection with the probe.

The three men have since been released under investigation. Detective superintendent Perry Stokes said: “We are encouraging anyone who believes they are a victim or anyone who has information about Kingsbridge Asset Management or companies associated with it, to come forward.”