A 43-year-old man has been arrested in Paphos on suspicion of being a involved in the fraudulent sale of land to Chinese investors.
The man is due in court later on Sunday. He is facing charges of criminal conspiracy, extorting money under false pretences, and money laundering.
The scam came to light on Wednesday when a Chinese woman reported to police she had given money to buy land, only to realise later that the land did not belong to the seller after investigating it herself and being told by the real owner that they had no knowledge it was being sold.
The Chinese woman had by then handed over 260,000 euros to a person she believed was an authorised middleman for the land deal.
Police said that from initial investigations it appeared that at least two local men posed as intermediaries for major developers, taking payments from potential Chinese investors.