Robert Tchenguiz, the property tycoon who formerly invested in pub companies Mitchells & Butlers (M&B) and Laurel, has been arrested along with his brother Vincent as part of the investigation into the collapse of Icelandic investment bank Kaupthing.
They are among seven men arrested today as part of the operation that involves the Serious Fraud Office, the City of London Police and investigators from Iceland.
Robert Tchenguiz had borrowed more than one billion pounds from the bank as part of his investments in M&B and Laurel, among other companies.
In a statement, the Tchenguiz brothers said: "We were arrested earlier this morning and are being questioned with regard to matters relating to our relationship with Kaupthing Bank.
"Both of us are cooperating fully with the investigation and are confident that, once concluded, we will be cleared of any allegation of wrongdoing."
The collapse of Kaupthing in 2008 has been under investigation by authorities in Iceland and Luxembourg.