Helmut Kiener, the founder of the K1 fund, has now been arrested. He will remain in custody in accordance with a court ruling made today. K1 is now not answering phone calls and a second person, an unnamed K1 manager, is now also a suspect. The German web-site of K1 has also been suspended. Files have been seized in Gernany and Switzerland and investigations are now extending to the Caribbean. It is alleged that K1 and Kiener have borrowed and invested in contravention of UK and French banking rules. There is in the region of $400 million involved, possibly more.

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