Darren Gough has become the latest celebrity to be caught up in a £80m “Bernie Madoff-style” scam. The former England bowler and Strictly Come Dancing winner and a member of his family have reportedly been swindled of nearly £1m in an alleged Ponzi fund run by fraudsters and aimed at top sportsmen and television stars.

Sources close to Gough said he was "devastated" after finding out his money had gone down the drain after the phony scheme collapsed, the Daily Mail reported. A member of Gough's family confirmed Gough and his brother-in-law, Paul Kratovil, were said to be among those hit by the alleged fraud. "I rang Paul after seeing reports of the scam. He and Darren have been caught up in it all," she said. "I don't know how they found out, but there are supposedly lots more people who do not realise they have been stung."

Police have twice arrested the suspected mastermind of the alleged fraud, Kautilya Nandan Pruthi, Financial consultants Kenneth Peacock and John Anderson, 43, both from Virginia Water, Surrey, have also been arrested.

Kevin Pietersen was asked to invest but refused, his spokesman confirmed.