Two former partners of Arck, Kathryn Joy Clark and Richard Aston Clay, have today been charged with fraud and forgery offences by the Serious Fraud Office and Nottinghamshire Police.
Between 2006 and 2012 Clark and Clay allegedly created and marketed various unregulated financial products which they made available to individual investors through regulated independent financial advisers.
It is estimated that approximately £60m was invested in these products by individual investors and, in some cases, IFAs themselves.
The charges against Clay and Clark relate to fraud by misrepresentation and forgery offences. Both have been bailed to appear at Westminster Magistrates' Court on Friday, 29 November.
The SFO and Nottinghamshire police have worked jointly on this investigation since May 2012.
Arck was a UK based investment vehicle that was set up to develop and sell overseas based properties. The liquidator's report states that sums in excess of £63m passed through the business' main account.
Clark and Clay received in excess of £4m from the business before it collapsed, according to the liquidator's report.
The report, seen by IFAonline, by joint liquidators Butcher Woods and Rendle & Co who were appointed in spring 2012, claims that Clark received payments from Arck in excess of £580,000 for which she has not been able to provide an adequate explanation.
Fellow former director Clay received payments in excess of £3.6m, for which he similarly can not provide an adequate explanation.
Arck also made payments in excess of £620,000 to two solicitors in order to settle Clay's personal liabilities. The liquidator's report states Clay has failed to explain why these payments were made by Arck.
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