Simon Morris, owner of struggling Leeds property company Morris Properties, has been arrested by police investigating money laundering and fraud.
Morris, a former director of Leeds football club, is understood to have been arrested in a morning raid on his home in Scarcroft, to the north of Leeds.
Seven other people were arrested across the country as a part of the raids.
Morris has been subject to a joint investigation by the Serious Fraud Office and West Yorkshire Police since a Panorama documentary which alleged that his firm sold student flats to buy to let investors at inflated prices.
West Yorkshire Police would not confirm if Morris was one of the arrested parties.
‘West Yorkshire Police have today arrested six people in West Yorkshire and two in West Midlands in connection with an ongoing money laundering and conspiracy to defraud investigation.
‘Three men from Leeds, three men from Bradford, and a man and a woman from Wolverhampton are currently in police custody being interviewed by detectives.
‘We will not identify any person who has been arrested until such time as they may be charged.’
SRM Holdings, Morris’s property company which was set up over the summer when he voluntarily dissolved Morris Properties, was placed into administration at the start of the month.
It is understood the firm, which has appointed Begbies Traynor as administrator, owes creditors around £50m.