One named in banned financial adviser arrest

A banned financial adviser who was last week arrested for misleading investors as part of a investigation by the Financial Services Authority (FSA) and West Midlands police has been named.

Gary Hexley was arrested on suspicion of conspiracy to deceive his clients, Westmidlands police have confirmed.

He and another individual, who was also arrested last week, have been held and interviewed by officers from the FSA, according to the Birmingham Mail.

Hexley's collapsed firm Sutton Coldfield-based firm Greenfield International left 237 creditors out of pocket to the tune of more than £2m, the paper reports.

The crash of the property development business left creditors, including many elderly West Midland investors, with total debts of £2,077,426.05.

The 49-year-old financier was made bankrupt with liabilities of nearly £1m and banned and censured by the FSA following the firm's demise, according to the Birmingham Mail.

Last week the FSA issued a statement which saying it had taken action against two individuals suspected of providing financial advice when not authorised to do so and making misleading statements to investors.

"With the assistance of the West Midlands Police, the FSA executed search warrants on three premises in the West Midlands and two individuals were arrested.

"Nobody has been charged at this stage in connection with the FSA's investigation which is ongoing," the statement said.

West Midlands Police officers executed the arrests because the FSA does not have the power to detain people.

A West Midlands Police spokesman told the Birmingham Mail: "We accompanied the Financial Services Authority to execute two warrants as part of their investigations."

The Financial Services Compensation Scheme is reportedly looking into whether Greenfield International investors are eligible for compensation.