Lord Hanningfield was arrested today over allegations he made fraudulent claims while leader of his local council.
The former Tory peer – who has already been jailed for fiddling his House of Lords expenses – was questioned over allegations he put in fraudulent claims while leader of Essex County Council, sources said.
A statement from Essex police said: “A 70-year-old man from the Chelmsford area has been arrested today … for fraud as part of an investigation into expenses claims at Essex County Council.”
The politician – who was born Paul White – has been released on bail until January 18 “pending further inquiries”.
Question marks over his claims via the local authority were first raised by the local Lib Dem opposition.
An Essex County Council spokesman said: “Essex County Council is continuing to assist Essex Police in the ongoing investigation, therefore it would be inappropriate for us to comment further.”