The boss of a letting agency has been arrested on suspicion of fraud.
Peter Leonard is believed to have been taken in for questioning by police on Tuesday. He has been bailed until September 29.
Sussex Police launched a fraud investigation into Hove- based Direct Lettings after complaints from tenants and landlords. Both the force and The Argus have been inundated with calls from concerned residents and landlords who claim to be owed thousands of pounds by the firm.
The arrest comes nearly four weeks after the Western Road in Hove-based business closed its doors on May 17.
Officials at the Tenancy Deposit Scheme suspended director Peter Leonard from the scheme two weeks ago. They are now in the process of contacting residents to explain how they can claim back any money lost in deposits given to the Hove-based firm.
A spokeswoman for Sussex Police said: “A 56-year-old man from Brighton has been arrested on suspicion of fraud by abuse of position.
“He has been bailed until September 29 while investigations continue.”
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