Four men have been arrested on suspicion of fraud in relation to the collapse of the Providence investment fund, according to reports from ITV.
The company was placed into administration by the Guernsey Financial Services Commission last August. All of the company's directors resigned, with the GFSC appointing two administrators from Deloitte to replace them.
The administrators told investors in January it was "highly unlikely" they would receive any money back.
Police have been investigating, and yesterday arrested the four men at four separate addresses in the island. They were arrested on suspicion of fraud by abuse of position and providing false or misleading information, or recklessly providing information relating to the protection of investors.
They have been bailed pending further inquires.