Police inquiries are continuing into the head of a collapsed island investment group who was arrested on suspicion of money laundering.

Dr Alan Louis was arrested outside Douglas courthouse in December after disqualification proceedings against him and two former directors of Louis Group IoM were concluded.

A police spokesman confirmed that Dr Louis is currently on police bail while investigations are on-going and he is due to return to answer that police bail in the summer.

Louis Group IoM was launched in the island in 2002 but was ordered by the high court to be wound up in 2013.

There were some 120 separate Louis Group companies in the Isle of Man.

Total losses of investors’ money in island-based entities in the Louis Group have been estimated at £50m by the liquidators.

Around a quarter of the 700 investors were from the Isle of Man, the remainder being mainly from South Africa and the UK.

The largest investor put in around £5 million but the vast majority invested was much smaller sums of £10,000 to £30,000.

These were, the liquidators said, ’man in the street’ type people who were hit hard by the collapse, having invested a substantial portion of their life savings.

They had been attracted by the Louis Group’s self-projected religious values and claims that this was ’low’ risk property-backed investment.