Two arrested over Diamond Shortbreak Holidays £700k ‘fraud’

Two people have been arrested following an alleged fraud of more than £700,000 at Diamond Shortbreak holidays which ceased trading in March.

In a ‘notice of administrators proposals’ released on Companies House it was revealed that ‘misappropriated funds’ had an ‘adverse’ impact on the company prior to its collapse.

Leicestershire Police confirmed enquires are ongoing as it investigates an allegation of ‘theft and false accounting’ relating to a business in Market Harborough.

A spokesman said: “Two people have been arrested in connection with the investigation and released on police bail pending further enquiries.

“The offences are alleged to have happened between March 2015 and February this year.”

Diamond Shortbreak Holiday ceased trading on March 15 with more than 7,000 forward bookings and all staff were made redundant.

The following day Arena Travel bought two of the Diamond Shortbreak Holiday brands, The River Cruise Line and Diamond Rail.

A third brand, Diamond Holidays, which offered coach breaks, was not bought and remains up for sale.