TWO businesses in Bournemouth and Poole are being investigated following the arrests of three Hampshire men on suspicion of a £740,000 fraud.

The three were arrested in Southampton on Tuesday morning on suspicion of VAT and Income Tax fraud.

Businesses in Bournemouth, Poole and two in Southampton were then searched.

Two of the men were also arrested on suspicion of money laundering offences. All three have been bailed until August.