City of London Police has dropped its investigation into former St James’s Place partner Peter Carron over the alleged misappropriation of £4.1 million of client money from his IFA business Primrose Associates.
Police did not name Carron, but said in response to a query about its investigations into Primrose that the Crown Prosecution Service had found insufficient evidence to secure a conviction against a 41-year-old man arrested in connection with its probe.
The owner of Primrose Associates is understood to have been arrested following allegations that money had been passed to another of his businesses, Evaluate Technologies. Primrose and Evaluate were both put into liquidation in June 2010.
‘A 41-year-old man was arrested on 15 July 2010 on suspicion of fraud offences. He has been released from police bail. After reviewing the case file the Crown Prosecution Service has decided there was insufficient evidence for a realistic prospect of prosecution,’ a spokeswoman for City of London Police said in a statement. ‘City of London Police will take no further action.’
The Financial Services Authority (FSA) alleged in August 2010 that Carron had misappropriated clients’ investment into a ‘special project account’ and urged investors to contact them. The FSA declined to comment on the case.
St James’s Place offered £2 million in compensation to 15 of Carron’s clients in August 2010. Primrose collapsed owing £4.1 million to investors, £317,000 to HM Revenue & Customs and £176,000 to banks, according to a report from liquidator KCBS.