Seven arrested in £28m fraud inquiry

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Seven people were arrested in the south of England in connection with a £28m share fraud investigation, the City watchdog said.

Financial investigators and police swooped on a number of properties in Surrey, West Sussex, London and Hertfordshire, the Financial Services Authority (FSA) said on its website yesterday.

Officials from several European law enforcement agencies, including the anti-money laundering unit of the Malta Police, were part of the so-called boiler room investigation which covered Britain and Europe.

Boiler room scams involve fake stockbrokers cold-calling victims and persuading them to buy shares in worthless, non-existent or near bankrupt companies.