Police have dropped their investigation into the rabbi who was arrested following a probe into the wealth management company HBFS.

The lawyer acting for Rabbi Benji Silverstone said his client was no longer the subject of City of London Police’s inquiries.

Rabbi Silverstone, head of investment company HBFS Wealth Management’s Manchester office, was detained last month on suspicion of conspiracy to defraud.

In a statement on Monday evening, his lawyer Daniel Berke said:“Rabbi Benji Silverstone has spoken at length to the police about his involvement with HBFS.

“The police have today released him from bail and are not pursuing any criminal charges against him.“

Rabbi Silverstone has worked for the wealth management company since April 2013.

He had previously worked as the Manchester director of Aish HaTorah for over nine years having  studied in the Mir Yeshiva in Jerusalem before qualifying as a rabbi at Aish Yeshiva

City of London Police arrested Freddy David, the managing director of HBFS Wealth Management, on suspicion of fraud and money-laundering last month.

HBFS customers were advised by the police “to check the status of any investments made through HBFS and, if they have any concerns, to contact City of London police.”

HBFS was required to cease advertising its services in all forms and to write to all existing customers to confirm that it is prevented from holding client money. According to its website, HBFS provides wealth management, inheritance tax solutions, and fund management portfolios for self-invested personal pensions.

The JC has contacted City of London Police for comment.