Chris Ruffle, who helped run the Chinese joint venture of international investment firm Martin Currie Investment Management, is understood to be under investigation over the "fraudulent" use of client funds. The potential action against Mr Ruffle emerged as Martin Currie agreed to pay a record $14m fine for its part in the scandal.

The fine by the Financial Services Authority (FSA) and the Securities and Exchange Commission (SEC) related to the use of millions of dollars of investors' money to prop up failing investments held by the company. Mr Ruffle, who grows wine at his Chinese castle, worked on the funds when the transactions took place.