THREE men have been arrested on suspicion of money laundering in connection with a long-running investigation into corruption in a North-East police force.

Officials confirmed that three men were arrested last week on suspicion of a variety of offences, including fraud by abuse of position, money laundering and corrupt practice.

A 46-year-old Teesside man and two men, aged 65 and 35, in Warrington, Cheshire, have been bailed until next year pending further inquiries.

They are the latest to be arrested as part of Operation Sacristy – an inquiry into people with current or past associations with Cleveland Police Authority and the manner in which the force may have conducted some of its business.

A spokeswoman for Warwickshire Police, which is carrying out the investigation, said: “Officers involved in Operation Sacristy last week arrested three men as part of the ongoing investigation. A 46-year-old man in Cleveland was arrested on suspicion of fraud by abuse of position, corrupt practice, misconduct in a public office, money laundering, fraud by false representation and conspiracy to defraud. He was taken to a police station in North Yorkshire to be interviewed and has been bailed until a date in April 2013.

“A 65-year-old man and a 35- year-old man, at two addresses in Warrington, Cheshire, were arrested on suspicion of corrupt practice, money laundering and fraud by false representation.

They were taken to a police station in Cheshire where they were interviewed and bailed until a date in March 2013.”

The announcement came the day before a disciplinary hearing involving the force’s suspended chief constable, Sean Price, is due to start.

On Friday, Mr Price went tothe High Court, in London, seeking a judicial review in an attempt to stop the planned hearing going ahead today. He failed and the hearing will begin at a secret venue later this morning.

The suspended chief constable was referred to the hearing by Cleveland Police Authority.

Authority members believe he must answer three allegations of gross misconduct relating to the recruitment of the daughter of the authority’s former chairman, Dave McLuckie.

Mr Price is also on police bail following his arrest in August last year, when officers from Operation Sacristy carried out dawn raids on a series of addresses across the Cleveland area.

The criminal investigation has also resulted in the arrest of Redcar and Cleveland borough councillor Mr McLuckie, along with the force’s former solicitor, Caroline Llewellyn, and an unidentified 42-yearold.

They all remain on bail as the investigation continues.

Criminal charges were dropped against Mr Price’s deputy, Derek Bonnard, but he is still to face a number of disciplinary matters.

Following his failed High Court challenge, Mr Price claimed it had been revealed in legal documents that he is unlikely to face criminal charges.

Mr Price, who has protested his innocence, said in a statement that a letter written by a North Yorkshire Police detective revealed that Operation Sacristy may not be completed until 2014. However, it was unlikely to lead to any criminal charges against the chief.

He said: “I have always maintained my innocence and will continue to do so at the disciplinary hearing – though I do feel criminal matters should have been resolved first.”

The misconduct hearing, which could last up to two weeks, will be held in private.