A woman arrested by police investigating the death of oil executive Carole Waugh and alleged fraud committed using her identity has been released on bail.

Miss Waugh, who lived in Marylebone, vanished from a family party in April and her body was eventually found in a lock-up garage in New Malden, south-west London, on August 2.

A 63-year-old woman from Cheshunt, Hertfordshire, was arrested yesterday on suspicion of conspiracy to defraud. She was questioned at a south London police station and has been bailed until a date in October, Scotland Yard said.

A post-mortem examination found Miss Waugh had suffered a stab wound. Two people, Rakesh Bhayani, 40, and Nicholas Kutner, 47, have been charged with her murder.

Kutner, of no fixed address, also faces two charges relating to renting Miss Waugh’s property at Tressard Court in Marylebone, and one of unlawfully withdrawing funds from her bank account.

He is additionally accused of posing as Miss Waugh’s brother Chris in an attempt to sell her London home.

Bhayani, from Wembley, north-west London, has been charged with three offences of identity fraud involving �280,000.

They are next due to appear at the Old Bailey for a plea and case management hearing on November 22.

Several other arrests have been made in connection with the alleged fraud but no charges have been brought.