The chief executive of Arch Financial Products (AFP) has hit out at Capita after the board it appointed to administer the Arch Cru cells hit him with a £26.6m lawsuit.
SPL Guernsey claims Robin Farrell, CEO of AFP, "acted dishonestly in assisting Arch in relation to each of Arch's breaches of its fiduciary duties".
It also said his conduct was "not honest by the ordinary standards of reasonable and honest people".
Its claims relate to allegations that Arch used the cells' money to make "secret profits" of £3.6m from a total £26m investment in a property company called Lonscale.
It has made a £20.6 claim for combined losses incurred by six of the funds' cells, while a further £6m claim has also been made for losses from disputed payments made by cells to Arch and a third party involved in the deal.
The CF Arch Cru funds were two UK open-ended investment companies authorised and regulated by the FSA. They were suspended by Capita, the funds' authorised corporate director, in March 2009 and are currently being wound up.
Responding to the claims, AFP said the allegations were "factually incorrect" and a "transparent attempt to shift blame away from Capita".
It said they were "bound to fail".
Referring to the allegation of "secret profits", Farrell insisted they had been disclosed to the directors of the incorporated cell company in 2007.
He said: "It is genuinely unfortunate that SPL Guernsey continue to waste investors' money unchecked by the regulators. By launching these legal actions [SPL chairman Hugh] Aldous is actively preventing any form of ‘global meeting' or mediation between the various parties.
"As a Capita and SPL director, Mr Aldous has an untenable conflict of interest and this has already been spelt out to the regulators."
SPL has previously lodged a £150m claim against Arch Financial Products itself for not exercising a fundamental care of assets and failing to account for "substantial secret profits"
Farrell said the latest claims added to the legal costs being incurred by Arch Cru investors, estimating them to be up to £7m already.
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