Crown Currency Exchange directors arrested
Two former directors of the collapsed foreign exchange company, Crown Currency Exchange, Peter Benstead and Edward James, were arrested and have been questioned in connection with the failure of the company.
However, police have said the two men have since been released on bail until July next year.
The two men have been named as Peter Benstead, 68, of Cornwall and Edward James, 70, former mayor of Glastonbury.
The Cornwall-based company collapsed in October and it has since emerged it owes an estimated £20 million to around 13,000 customers.
However, the company is not expected to pay out all the cash its customers lost, since it was not covered by any of the Financial Services Authority compensation schemes.
The company allowed individuals and business customers to pre-order foreign exchange at a set price up to a year in advance.
The company was one of the UK’s largest foreign exchange websites and was established by Mr Benstead, and his wife Susan, in 2005.
Its collapse was attributed to the downturn in the travel market and it said it had “experienced a difficult trading environment” over the last year.
The police investigation centres on the actions of the directors of Crown Currency Exchange and Crown Holdings (CCE). The police also said they were in contact with the administrators for Crown Currency Exchange, MCR.