A COMMUNITY has been left in shock after a "quiet neighbour" was arrested as part of a major police investigation into a £40million fraud case.

Terry Freeman, 60, an investment fund manager, was arrested when detectives stormed his home in Buckhurst Hill on Monday (February 9).

He was questioned on suspicion of money laundering, and offences under the Financial Services and Marketing Act, and released on police bail.

The drive at his £650,000 house in Whitehall Lane remained empty on Thursday (Feb 12). The curtains were drawn, post had piled up on the mat, and neighbours said they had not seen Mr Freeman or his Russian wife, Lana, for days.

Peter Thom, 76, a retired engineer who lives opposite Mr Freeman's home, has lived on the affluent estate since the homes were built ten years ago.

He said: "It is a very close-knit community here, and everyone knows everyone.

"I did not know Terry personally, but I did say hello to him once or twice.

"He is a quiet neighbour. He only moved in a couple of years ago, and very much kept to himself.

"It is a big shock to hear he might be involved in something like this. I guess it just goes to show that you never really know what goes on behind closed doors."

Other neighbours said the normally quiet street has been besieged by reporters since the arrest.

Many described the Freemans as a "nice couple", but said they were often away from home.

Mr Freeman was director of GFX Capital Markets, which ran two offices in the Square Mile before it ceased trading last month.

Some investors have reportedly complained of losing six-figure sums, and Mr Freeman, who specialised in foreign exchange dealing, is understood to have received death threats.

In recent weeks worried customers have been swapping messages with Mr Freeman on the Traders Diary blogging website.

One, posted on January 20, says: "I think I'm even more confused, Terry. But so long as it doesn't affect our investment I suppose it doesn't matter which office we deal with, so long as someone is able to handle our enquires."

Worried investors are advised to call the City of London Police fraud desk on 0207 601 6999, or email frauddesk@cityoflondon.pnn.police.uk.