Mick Gatto arrested by Victorian police over alleged financial offences

Underworld figure Mick Gatto has been arrested by Victorian police investigating "alleged financial offences".

Victoria Police said in a statement that detectives from Taskforce Hawk executed a warrant at a Mount Martha property this morning.

"Two people at the address, a man and a woman both in their 70s, were arrested and are being interviewed by police," the statement said.

The ABC has confirmed Mr Gatto is the man who was arrested.

Victoria Police's Taskforce Hawk is an operation dedicated to investigating criminal behaviour in the construction sector.

Mr Gatto describes himself as a construction industry "mediator and arbitrator" who helps solve disputes between builders and workers.

But in a report prepared for a Queensland inquiry into the CFMEU published in February, lawyer Geoffrey Watson SC alleged Mr Gatto had held a "malignant influence" on the CFMEU for decades.

Mr Watson's report alleged Mr Gatto received millions of dollars in retainers from builders, to prevent shutdowns on their work sites.

The report described the payments as a "kind of extortion" paid for by the taxpayer.

In response to Mr Watson's allegations, Mr Gatto told Melbourne radio station 3AW he was "not above the law" and had no ties to criminal gangs.