FOUR people have been arrested as part of an investigation into a suspected £200,000 fraud at a Blackburn mobile phone firm.

Bosses at GM Group, Daisyfield Business Park, Appleby Street, called in members of Blackburn Police's ethnic crimes unit amid concerns about mobile phone commission payments.

Sgt John Rigby confirmed that three arrests - two men and one woman - were initially made on May 10 at the premises.

Police said another arrest was made early last Sunday morning by the same officers, also at the firm. The allegations centre on commission payments being credited to individuals, rather than the company.

Sgt Rigby says that all those arrested are aged between 20 and 25, come from Blackburn, and were employed by the company.

The four, who have not been named, were released on police bail for further investigations to be carried out.

Sgt Rigby added: "This was part of what we believe to be a large-scale fraud within the company.

"Because of the technical nature of the company we obviously need expert assistance now to be able to ensure a proper investigation is conducted.

"No members of the public have been affected as a result of this investigation and it certainly should not affect the integrity of the company."

He also confirmed that management at the company had co-operated fully with the investigation to date.

GM Group sales and marketing was established by young businessman Mohammed Patel nearly two years ago and employs around 75 people.

An official spokesman for the company confirmed the value of the alleged fraud but would not comment further.