FRAUD officers have arrested a North-East estate agent on suspicion of money laundering after £34,000 was found at his home.

Andrew Oliver Bellwood, a partner in David Oliver Residential, in Darlington, has been bailed while police continue their investigations.

Officers searched 29-year-old Mr Bellwood’s home, in Alverton Drive, Newton Aycliffe, County Durham, on Thursday morning.

Yesterday, a police application to hold the seized cash for three months while an investigation into the firm is carried out was granted by Newton Aycliffe magistrates.

Detective Constable Dave Sampson told the court that bundles of money were found in a kitchen cupboard and on top of a wardrobe.

He said: “As a result of information received from a reliable source, Durham Police have commenced a fraud investigation in respect of the company David Oliver Residential, an estate agent in Duke Street, Darlington.”

The application was opposed by Jane Scott, acting for Mr Bellwood, who said the money was part of his legitimate business earnings.

She questioned the need for a three-month detention, but Det Con Sampson said the detention could go on for much longer.

“We intend to investigate every mortgage made through the company since January 2007,” he said.

“We estimate it could be hundreds, if not thousands, of mortgages and re-mortgages.”

Det Con Sampson said Mr Bellwood’s business partner, Craig David Purdie, 28, was also being investigated and the case is linked to inquiries being carried out on Tyneside.

Northumbria Police confirmed last night that five addresses were searched on Thursday during a probe into the activities of two property companies.

Following a referral by the Financial Services Authority, the force’s economic crime unit is investigating North-East Property Buyers and Newcastle Home Loans, both based in Gateshead.

As well as the five properties in the Northumbria force area, four properties in Durham were searched, one of which is believed to be Mr Bellwood’s.