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Man arrested over fraud claims

06/11/2007

A man has been arrested in New Zealand over an alleged £28 billion plot to defraud the Bank of England.

Press reports name the suspect detained by police as Brian Archer, 59.

Police in New Zealand say the man could face extradition to the UK to face the charges against him.

Detective sergeant Darryl Brazier said the man would appear before a court in the city of Tauranga to answer the charges, the New Zealand Herald has reported.

Six people are currently on trial in the UK over the suspected scam to defraud the Bank of England by attempting to cash rare bank notes with face values of up to £500,000.

London's Southwark crown court has heard how the alleged gang of fraudsters, who include an Australian solicitor, apparently told Britain's central bank that the notes were owned by former Chinese nationalist officials – one of whom was 116 years old.

It is claimed that they hoped to exchange the money, said to have been hoarded from the last century, for modern notes.

But prosecutors have said that their alleged plan to defraud the Bank of England was flawed because £500,000 notes have never existed.

The six men all deny conspiring to defraud the Bank of England between December 1st 2006 and March 27th this year.

It is expected that their trial will last six weeks.