Arrest over '£28bn plot' to defraud Bank of England

Police in New Zealand have arrested a man in connection with an alleged £28 billion conspiracy to defraud the Bank of England.

Officers said Brian Archer, 59, was to appear at a court in Tauranga today, where he faces extradition to the UK.

The alleged scam involved an audacious bid to cash fake bank notes with face values of up to £500,000.

Six other people, including an Australian solicitor, are on trial at London's Southwark Crown Court.

The court has heard how the gang told bank officials the notes were owned by former Chinese nationalist officials, one of whom was 116 years old.

But prosecutors said their plan was flawed because genuine £500,000 notes never existed and only 63 £1,000 notes were unaccounted for by the bank.

All six men deny one count of conspiring to defraud the Bank of England between December 1, 2006 and March 27 this year.

The trial, expected to last six weeks, continues.