City of London Police have dismissed claims that they dropped their investigation into a Manchester rabbi arrested following a probe into the wealth management company HBFS.

A lawyer representing Rabbi Benji Silverstone, head of investment company HBFS Wealth Management’s Manchester office, issued a statement on Monday evening claiming his client was no longer the subject of a police probe.

But on Wednesday, City of London Police contacted the JC and insisted  Rabbi Silverstone, 40, was still one of two individuals who were the subject of their inquiries.

A police statement said: “A 40 year old male from Salford, Lancashire, was arrested on Tuesday 19 December.

“This was the second arrest in the City of London Police’s investigation into HBFS Financial Services Limited.

“He was re interviewed at Bishopsgate police station on Monday 15 January 2018 and has now been released under police investigation.

“The City of London Police can also confirm that a 49 year old male from Borehamwood has been arrested and he has now been released under police investigation.”

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

In a statement on Monday evening, Rabbi Silverstone’s  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.“

City of London Police arrested Freddy David, 49, 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.