Two men have been arrested as part of a police probe into an historic paedophile ring involving children's homes in southwest London.
Boys were allegedly taken from up to three care homes in Richmond to the Elm Guest House in Barnes where they were abused by gay men, said Sky News' crime correspondent Martin Brunt.
A 66-year-old man from Norfolk and 70-year-old John Stingemore from East Sussex have been arrested on suspicion of sexual offences, said police.
Stingemore is believed to have been deputy head at one of the care homes at the time of the abuse in the early 80s.
Some prominent Tory politicians and other high-profile individuals are thought to be involved, said Brunt.
The arrests were made as part of Operation Fernbridge, which was launched after concerns were raised by MP Tom Watson.
Speaking in Parliament in October last year, he said that a file of evidence used to convict Peter Righton of importing child pornography in 1992 contained "clear intelligence" of a sex abuse gang.
Mr Watson alleged that a member of the group had bragged about links with a senior aide to a former prime minister.
Scotland Yard detectives have been interviewing alleged victims - who claim they were abused at the guest house by gay men.
Commander Peter Spindler of the Metropolitan Police said: "This is a complex multi-agency investigation supported by the NSPCC, CEOP and Richmond Social Services involving non-recent allegations of sexual assault against children.
"It is vital that anyone who has been affected by or has information about activity in the early 1980s at the Elm Guest House, or the Grafton Close care home in Barnes, speaks to the NSPCC on their Helpline on 0808 800 5000, or their local police."
A spokesman for Richmond Council, which ran the care home, said: "Richmond Council considers the safeguarding of all children and young people as an utmost priority and we take any allegations of abuse very seriously.
"As such we are offering our full support and co-operation to the police during their investigation. As the investigation is ongoing, it would be inappropriate to comment further at this time."
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