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SFO Arck probe turns spotlight on advisers
by Jun Merrett on Dec 11, 2012 at 10:47
The Serious Fraud Office (SFO) has appealed to investors for information on the advisers who sold them failed property investment Arck LLP.
The SFO has also asked investors if they were given any information about the level of risk associated with the investment and who by.
The organisation has also requested financial advisers with clients invested in Arck products get in touch to submit a separate questionnaire.
It added that the Financial Services Authority (FSA) was also interested in matters arising from its 'Project Bijou' investigation into Arck and said information provided may also be passed onto the regulator.
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.
Arck, which is currently in liquidation after Butcher Woods and Rendle & Co were appointed as joint liquidators in June, has been embroiled in investigations, arrests and regulatory action over the past year.
The SFO was alerted to Arck in March and opened an investigation in May.
In March, Kathryn Clark, managing director of Arck LLP was arrested by Nottinghamshire Police on suspicion of fraud by false representation and money laundering. Richard Clay, Arck’s other managing director was also arrested.
According to the FSA Clark appeared to have received, circulated or been involved in the provision of forged bank statements purporting to relate to the Arck General Client account at Yorkshire Bank.
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