Arch Financial Products' chief executive Robin Farrell and compliance director Robert Addison have hit back at allegations they lied in court, saying these were false and unfair.
In their witness statement submitted to the High Court they said any inconsistencies arose naturally from changes in the arrangements of financial transactions.
They accused the claimants of refusing to accept the real evidence and instead focusing on a false perception of inconsistencies.
Arch FP is being sued for £150m by the Guernsey cells' current board, SPL Private Finance, for gross negligence in its role as investment manager of the failed Arch Cru funds between 2007 and 2008.
SPL has also brought claims against CEO Farrell, alleging that he dishonestly assisted Arch FP in breaches of fiduciary duty in relation to its investment in Lonscale, a holding vehicle of student accommodation group Club Easy.
The board also alleged that Arch had pocketed a 'secret' £3m profit from the failed investment.
In the first part of the final hearings at the High Court, Farrell and Addison were accused of giving inconsistent evidence, lying and distorting the facts by the claimants' lawyer, QC Richard Coleman.
But Farrell and Addison said in their statement, which was presented to the court on Thursday: "The claimants make much of alleged inconsistencies between the accounts of the defendants and the evidence, in order to unfairly posit a lack of truthfulness.
"Inconsistencies arise naturally if there are changes in the arrangements over time, which is often the case with relatively complex structured finance transactions.
"The perception of inconsistencies by the claimants has much more to do with the claimants' unwillingness to accept certain evidential realities, rather than the other way around."
The claimants argued that the 'secret' profit was paid in the form of a fee by the Lonscale investment.
But Farrell and Addison explained that there was evidence that the fee was paid by business partner Foundation Capital's Lee Barkman from the gains he had made from selling Lonscale.
Farrell and Addison denied all claims made against them and said they had "always acted in good faith and to the best of their ability."
"The claimants' case is that Arch 'gave up' £3.6m of fees plus rights to all future fees, in return for a waiver over a (disputed) liability of £1.2m in relation to 'cross investment fees'. That construction simply makes no commercial sense."
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