A Sesame adviser is facing £600,000 of claims as 19 clients pursue him over alleged mis-selling of failed property investment Arck.
Law firm Regulatory Legal is representing clients of Alan Mason, director of Financial Distinction and a Sesame appointed representative, claiming he gave ‘negligent’ advice on the Arck funds.
It also claimed Mason did not adequately ascertain’ clients’ attitude to risk and that there was no evidence in client documents whether the degree of risk associated with the investment was discussed with clients.
All 19 clients have either been referred or will be referred to Sesame, which has an internal complaints handling process.
A Sesame spokesman said: ‘We take our regulatory responsibilities very seriously and all customer complaints are fully investigated. It would not be appropriate for us to comment on any individual cases.'
Michael Cotter who is handling the claims for Regulatory Legal said: ‘I imagine Sesame will uphold the complaints due to the mis-sale of Ucis and award the return of the capital sum and interest in accordance with the principles of the Financial Ombudsman Service (FOS).
‘In the event Sesame fail to act as such, we will refer all matters to FOS or issue proceedings in the High Court.’
Arck, which is currently in liquidation, has been embroiled in investigations and regulatory action over the past year.
In December last year, the Serious Fraud Office appealed to investors for information on the advisers who sold the investment.
Around 750 investors could stand to lose around £60 million from the Arck investments, which were intended to produce a return secured against a plot of land with planning permission.
Mason could not be reached for comment.