Senior politician arrested by Guernsey Police
In a statement, Guernsey Police said a 61-year-old man had been arrested.
The politician, who leads on external relations for the Policy and Resources Committee, has been released by police without being charged.
Police said inquiries were ongoing and officers would "not provide further commentary while the investigation continues". Le Tocq has been contacted for a comment.
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Le Tocq lost the election to become the island's most senior politician earlier in July.
He finished ninth in June's general election, where he received 8,002 votes.
In a statement, the police said: "We would remind the community that this investigation is ongoing and no-one has been charged with any offence at this stage.'
The States of Guernsey's Policy and Resources Committee said in a statement: "The committee has been informed that Deputy Jonathan Le Tocq was arrested yesterday and is now the subject of a police investigation.
"The remaining members of the committee have unanimously agreed that Deputy Le Tocq will not participate in any committee business while the police investigation is ongoing.
"The committee will not be commenting further at this time."
In an e-mail to all States members seen by the BBC, President of Policy and Resources Lindsay de Sausmarez urged deputies "not to speculate".
She added the news came as a shock and that this investigation "may take some time".
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