Arch accused of taking '£3m in fees' for 'nil-value investment'

The case against Farrell and Arch is being brought by SPL funds, which took over the failed Arch Cru cells, on the grounds of conflict of interest and breach of fiduciary duty in Arch's role as investment manager. Claims that Arch pocketed a secret £3m fee relate to an investment made by Arch Cru in heavily indebted student accommodation business Club Easy through holding company Lonscale. Arch Cru paid £21m for the business which lawyers for SPL argue was "worthless", and did not justify such a large fee for Arch or deal partner Foundations Capital, a British Virgin Islands-based com...