City of London Police is investigating Primrose Associates, which has gone into liquidation amid fears that £4 million of client money has been lost, according to liquidator John Kelmanson.

Kelmanson, partner with accountants KCBS, said around 20 clients had placed £4 million with Primrose for investment.That money was then passed to Evaluate Technologies, a mortgage software company owned by Peter Carron, also owner of Primrose and partner of upmarket sales force St James’s Place (SJP).

‘The concern of the investors was that the project [Evaluate Technologies] was not dissatisfactory but that they knew nothing of it,’ said Kelmanson. Comment Technologies, also owned by Carron, bought the intellectual property of Evaluate, which was put into liquidation in April, said Kelmanson.

Kelmanson said he would investigate where the money had gone. He added that the clients have claimed that Carron approached them after obtaining their details from SJP.‘They think his relationship with St James’s Place was such that he contacted them via a little black book from that source,’ he said.

Carron could not be contacted for a comment. City of London Police did not comment.