Detectives from the Royal Cayman Islands Police Service (RCIPS)’s Financial Crimes Unit (FCU) have arrested a 47-year old man on suspicion of theft, false accounting and issuing false documents following investigations into the collapse of four hedge funds listed under the umbrella name Grand Island.

Cayman Islands Monetary Authority (CIMA) confirmed in June Grand Island funds were put into voluntary liquidation by the funds’ shareholders. Three of the four funds were registered with CIMA in 2006 and one other was an unregulated fund, Cayman NetNews reports.

Police believe the funds are worth millions of dollars but it is still unclear how much money was lost and how many people are affected by its collapse.

However, it is widely speculated the losses are up to $US70m (₤35m) and the main commodity traded was oil. The minimum investment in the fund was $US100,000.

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Read the Cayman NetNews