POLICE are investigating allegations of fraud at a North-East legal firm.

Nathan Horsley, a solicitor who worked for Sunderland-based Hedleys and Co, remains on police bail after being arrested on suspicion of fraud by false representation last year.

The Solicitors Regulation Authority (SRA), which regulates solicitors in England and Wales, is also looking into the allegations.

A spokeswoman for Northumbria Police said: "A 31-year-old man was arrested on November 12, 2013 on suspicion of fraud by false representation.

"He was released on bail pending further enquiries."

An SRA spokesperson said: “We are aware of the police investigation and are attempting to get hold of all relevant information before deciding on the appropriate action.”

Hedleys and Co, which has two branches in Sunderland and has been in operation since 1880, declined to comment on the arrest.

A man who confirmed they were Mr Horsley then put the phone down when The Northern Echo rang his Hartlepool home to discuss the allegations.

A woman said it would be "inappropriate" for him to comment during a second call.