MEP Nikki Sinclaire, who sponsors Hereford United striker Yoann Arquin, has been arrested on suspicion of conspiracy to defraud the European Parliament.
The arrest of Sinclaire and three other people is part of an inquiry following an allegation made in 2010 into allowances and expenses.
In a statement reported by the BBC, Sinclaire said that 'The allegations at hand are old allegations from a disgruntled ex-employee'
She went on to say that she is 'eager to clear her name and has nothing to hide'.