A WEALTHY businessman has been arrested by police investigating allegations of financial irregularity at a Wearside mortgage business.
A probe was launched into the Washington Mortgage Centre with officers carrying out searches at the premises in the Galleries, Washington, last month.
A simultaneous search was also carried out at a private home, with officers seizing paperwork and financial records.
David Reid, 49, a member of the Durham North West Labour Party, has been arrested by Northumbria Police.
He has been suspended by the Labour Party.
A Labour North spokesperson said: “David Reid has been suspended from the Labour Party pending the outcome of any police investigations.”
Officers searched Mr Reid’s home in the village of Burnhope, near Lanchester, County Durham, at the end of last month. Det Insp Steve Wouldhave, of the force’s Major Crime Team, said officers had received a number of allegations about the firm that were being looked into.
He said: “We have received a number of allegations of financial irregularity relating to investments made through the Washington Mortgage Centre over a number of years,” he said.
“Our investigations are at an early stage.
“It is too soon to give further details in terms of the sums of money involved or the number of people affected.”
Detectives would now like to hear from anyone that has been involved with the company who has any concerns.
Det Insp Wouldhave added: “I would like to appeal for anyone who has been involved financially with the Washington Mortgage Centre and who has any concerns to contact one of our officers on the 101 non-emergency number.”