London police have arrested five gamblers said to have used inside information to make a fortune on share markets through financial bookmakers.
The five, aged in their 20s and 30s, were arrested some weeks ago and were released on bail pending further investigation, a police spokesman said.
He said one of those arrested was a former investment banker, but said none of the other suspects had worked in London's financial district.
"We're gathering the evidence from the various spread-betting firms with a view to putting it to the Crown Prosecution Service who will then make a decision as regards prosecution," a police spokesman said.
Spread betters enable punters to bet on share price movements without ever owning the actual stock, in much the same way that futures contracts do.
Earlier, the Timesnewspaper had reported that the five suspects had netted at least £2 million through their bets. The spokesman said the figure was speculative, adding that it was too early to judge how much had been made.
The spread-betting industry is estimated to have grown about 30 per cent in 2000, with about 100,000 individuals, mostly financial professionals, placing regular wagers.