DISGRACED Tory peer Lord Hanningfield has been arrested on suspicion of fraud less than a week after leaving prison for fiddling his House of Lords expenses.

An Essex Police spokesman said: "A 70-year-old man from the Chelmsford area has been arrested today, Wednesday, September 14, 2011, for fraud as part of an investigation into expenses claims at Essex County Council.

"He has been released on police bail until January 18, 2012 pending further inquiries."