Yorkshire Bank has written to some investors in failed property developer Arck LLP with offers of “financial support” , the Financial Conduct Authority has revealed.
According to the FCA, Yorkshire Bank has agreed a support scheme for a number of people who invested in certain Arck investment schemes, within specific timeframes, and is contacting all known investors to establish whether they qualify for support within the scheme.
Arck used independent financial advisers to market unregulated property development investments, “offering very high returns with no risk to capital”, to approximately 700 investors between 2006 and 2011. Arck lost approximately £45m of investors’ money, with investors seeing little or no returns.
Arck entered liquidation in February 2012. Its two former partners, Kathryn Clark and Richard Clay were charged with fraud and forgery offences by the Serious Fraud Office and Nottinghamshire police in November 2013 in relation to Arck LLP, HD Administrators LLP and other related companies.
A number of Arck investments were made through self-invested personal pensions. In March 2012, the Financial Services Authority issued a supervisory notice on one of the Sipp operators, HD Administrators
The notice revealed that Mr Clay sent an email dated 29 July 2011 to an IFA acting on behalf of investors attaching a bank statement purportedly showing the balance of the Arck General Client account at Yorkshire Bank to be £12,269,425 as at 1 July 2011.
In fact, at this date the real balance was £25.87, according to the FSA.
The FCA emphasised there is no suggestion that Yorkshire Bank were affiliated or implicated with Arck investment schemes, but simply provided banking facilities to Arck and received investors’ money into accounts in its name.
Investors claim to have lost their investment as a result of an alleged fraud perpetrated by Arck, but have been seeking redress either directly from Yorkshire Bank and/or from Arck via a claim in its liquidation.
The FCA said it has worked closely with Yorkshire Bank to ensure a “fair and early resolution” for those investors who qualify for support within the scheme.