500% roadshow ends with arrest

THE man behind a multi-million pound investment scheme that offered returns of 500% or more has been arrested after a seven-month investigation by the Serious Fraud Office and Kent police.

Kevin Foster, a 46-year-old former insurance salesman from Doddington, Kent, was arrested last Tuesday. A spokeswoman for the Serious Fraud Office said: 'He has been arrested on suspicion of conspiracy to defraud and theft.' It is understood that Foster went voluntarily to Sittingbourne police station, accompanied by his solicitor.

The arrest follows a series of police raids in the Ashford area of Kent ten days ago. Then, four men said to be business associates of Foster were arrested for alleged money-laundering and investigators seized documents and computers.

Foster's KF Concept organisation, which operates gambling syndicates and puts money into network marketing businesses, attracted thousands of investors after holding roadshows around the country.

It gained publicity by supporting local charities and sponsoring sports teams including the Cardiff Devils ice hockey squad and Llanelli football club. But in February, the Financial Services Authority raided Foster's £2 million luxury farmhouse, where he keeps a collection of llamas, peacocks and koi carp.

FSA lawyers won High Court orders banning Foster, his wife Elaine, and another KF Concept boss, Kevin McNab of Llanelli, from operating any unauthorised investment schemes.

Their assets and bank accounts were frozen. After studying evidence seized in the raid, FSA officials called in the Serious Fraud Office.

Foster will be fighting the FSA in a civil court case set down for next month. Lawyers acting for the financial

watchdog issued a statutory demand, a legal device challenging Foster to prove he can afford to repay investors. Foster will ask the court to set this aside.

If he fails and cannot demonstrate that his scheme can cover the millions of pounds due to investors, the FSA has said it is likely to petition for him to be declared bankrupt.