It is unconfirmed whether the suspect who was subsequently released on bail is 41-year old Primrose owner, Peter Carron.
A statement from the police did not confirm the suspect’s identity, but said: “A 41-year-old man was arrested on July 15th in the City on suspicion of fraud by false representation and abusing a position of trust. The suspect, who is from South East London, was released on bail.”
Primrose was put into liquidation on the 21st June following concerns about the safety of customer cash and unsustainable levels of debt in the business.
Karyn Jones and John Kelmanson from accountants KCBS were appointed joint liquidators and said at the time that the Financial Services Authority was aware that client money could have been at risk at Primrose.
City of London Police is continuing the investigation into suspected fraudulent activity at Primrose Associates.
Carron was unavailable for comment, but Kevin Friend who worked with him at Evaluate, another business owned by Carron which has gone into liquidation, said he believed that Carron was at heart a “good guy”.
He did not confirm whether Carron had been arrested but said: “I would stand by Peter’s character and say that his intentions are always good. Whatever he’s done, if anything, he wouldn’t have done it deliberately to defraud people.”
