NINE people were in custody last night after a series of dramatic police raids across the North-East.

Detectives said the early-morning swoops marked the culmination of a long-running investigation into a gang suspected of carrying out a financial fraud.

Although details of the alleged fraud have not been revealed, The Northern Echo understands the investigation concerns an attempt to defraud large financial institutions of tens of thousands of pounds.

Seven addresses across Cleveland and Darlington were raided following the "complex" joint investigation by Durham and Cleveland Police during the past few months.

Last night, police hailed the conclusion of their operation - in which armed police were sent to one of the arrest scenes - a success.

All nine men were arrested on suspicion of attempting to obtain services by deception.

Five men in their 30s and 40s were arrested in Cleveland during raids at five addresses in Middlesbrough and one in nearby Normanby. Four arrests were made at a house in Hilda Street, Darlington, after a lengthy stand-off during which armed police surrounded the area.

Dog handlers and police in riot gear were also among the 20 officers from the Durham and Cleveland forces who were involved in the Darlington operation, which took place just off Haughton Road at about 9am.

The area surrounding the Hilda Street house and Borough Road were sealed off for about an hour before officers called out the occupants.

Neighbours said three of the four men - aged in their 20s and 30s - had arrived at the house only several hours earlier and did not live there. Police confirmed that only one of the four men is from Darlington and the other three are from Stockton.

The locations of the Middlesbrough and Normanby raids were not disclosed by Cleveland Police yesterday.

Last night, detectives continued to question all nine men at police stations in Durham and Stockton. One man was initially held at Darlington police station, but was later transferred to Durham for questioning.

Superintendent Andy Summerbell, operational commander of Darlington police, said: "Detectives from the two forces have been working closely together over a period of months to bring this complex operation to a successful conclusion."

Chief Superintendent Mark Braithwaite, of Cleveland Police, said it had been a "protracted investigation", which had involved close co-operation between the two forces.