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Police have launched an investigation into £37,500 of donations to Robert Jenrick’s campaign to become Conservative leader in 2024 after a referral from the elections watchdog.

The Metropolitan police confirmed on Wednesday they were undertaking an inquiry after the Guardian revealed in April that they were assessing the evidence about donations to Jenrick, who has since joined Reform UK.

The Electoral Commission had been investigating allegations that the £37,500 of donations to his campaign were from a foreign source, in breach of electoral rules.

A Met spokesperson said: “We have launched an investigation following a referral from the Electoral Commission on Tuesday 6 January concerning donations connected to a political party’s leadership campaign. The investigation remains ongoing.”

In response, Jenrick said the allegations are “entirely false, but it is no surprise that an establishment determined to stop Reform from delivering the change that this country so desperately needs would resort to making these demonstrably untrue claims”.

He added: “I have had no contact with the Met police whatsoever in connection with this matter.”

The exact scope of the investigation is unclear and the police have not confirmed whether it relates to any specific individual.

The revelation that Jenrick’s political financing is under scrutiny will be embarrassing for the senior Reform politician as the party grapples with separate allegations about leader Nigel Farage’s funding.

The Guardian previously established that the Electoral Commission received allegations relating to donations to Jenrick by a UK-based company, The Spott Fitness.

It is understood the electoral investigation centred on claims that £37,500 out of the £100,000 in donations from The Spott Fitness was ultimately given by the US businessman Gary Klopfenstein via a US company he founded called Innovyz USA.

The allegations made to the Electoral Commission raise questions about whether the donations were permissible within electoral law, given that foreign companies and individuals are not allowed to donate to UK politicians or parties.

Jenrick has previously said he and his campaign team had complied with all electoral laws and that he had no knowledge of whether Klopfenstein was behind some of the donation, and that he had never had any contact with him or been aware of any alleged connection with the Spott Fitness donation until the Electoral Commission made inquiries.

A spokesperson for Phillip Ullmann, a UK businessman previously thought to have been the ultimate source of donations made through The Spott Fitness, had no comment.

In April, he said he was transparent with Jenrick’s campaign and voluntarily gave information to the Electoral Commission.

In 2024 Jenrick was a Conservative MP raising funds for a possible leadership run to take over from Rishi Sunak, but he has since defected to Reform and is now Farage’s Treasury spokesperson.

Kevin Hollinrake, chair of the Conservative party, said: “The Electoral Commission rightly referred this matter to the Metropolitan police who are now investigating.

“The public deserves the truth about this donation.”