Detectives investigating an alleged benefit fraud have arrested controversial York landlord Geoff Laverack.

Dozens of Task Force and Fraud Squad officers joined Benefits Agency officials in a combined operation in York.

Mr Laverack was arrested and four properties were raided and a substantial amount of documentation was seized.

Police said further searches were being conducted today.

Mr Laverack, whose plans to open a homeless hostel in The Groves were withdrawn earlier this year after a storm of protests, was today still in custody in York under questioning by fraud squad officers.

Police said a 50-year-old man, arrested at 9am yesterday, had been detained today for an additional 12 hours.

It is understood that 20 Task Force officers, all the officers from the Fraud Squad at Tadcaster and at least eight officials from the Benefits Agency took part in yesterday's operation.

A mother-of-three from the Groves area said she was walking with her children yesterday morning when she saw a large number of police in Eldon Street.

"There were police wearing body armour swarming all over the place. They did not say what they were up to and nobody seems to know but it was all very dramatic."

A spokesman for Mr Laverack's solicitors, Gordon Gildener, said today he had no comment whatsoever to make.

Laverack Accommodation owns several properties in Eldon Street.

The Park Grove Residents' Association has expressed concern about the high number of bedsits and houses in multiple occupation in The Groves, saying family accommodation was more appropriate.

Its worries have included fears that the sewers might not cope with the number of people living in bedsits.

Mr Laverack's first conflict with residents in The Groves came five years ago when he applied toopen a hostel in Eldon Street. The application was withdrawn.

In April this year, residents braced themselves for a second fight after he submitted an application to turn bedsits and a warehouse at 74, Eldon Street into hostel accommodation.

The hostel plan was withdrawn in May after planning chiefs recommended refusal.

Mr Laverack subsequently submitted a fresh application to convert the warehouse into a set of self-contained flats and houses. This was granted permission by the council in July.

After the firm won the planning permission last month, a spokesman said it was making great efforts to improve relations with the council and local residents, and looked forward to a more constructive and positive future dialogue.

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