Primrose Associates has been put into liquidation, with fears £4 million of client money transferred out of the business has been lost, and creditors contacting City of London Police over their concerns.
John Kelmanson, appointed liquidator of the company alongside Karyn Jones, said that £4 million of client money had been passed from Primrose Associates to another business, Evaluate Technologies, which has also gone into liquidation. Kelmanson, partner of accountants KCBS, was pessimistic about recovering the money.
He said a meeting of creditors yesterday had been 'heated'. 'The main topic of conversation was the extent of deficiencies which are £5 million in total,’ said Kelmanson. ‘Not one of them [the creditors] stated that they knew where money had been invested,’ he said. ‘They were not shareholders they were members of the public. There are people who lost their life savings.'
Kelmanson said he had no seen no evidence that client cash was kept segregated from corporate accounts at Primrose Associates. ‘We have not seen that at all,’ he said.
Primrose Associates and mortgage software company Evaluate Technologies are both owned by St James’s Place partner Peter Carron. Kelmanson said creditors had contacted the Financial Services Authority and City of London Police over Primrose Associates. Carron was contacted for comment via his remaining businesses but has not responded to calls.