FCA bans Arck pair who caused £33m consumer loss

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FCA bans Arck pair who caused £33m consumer loss

The Financial Conduct Authority has banned both former partners of Arck LLP, claiming their actions led to consumers losing £33m.

Richard Clay and Kathryn Clark were both given prison sentences last year after pleading guilty to three counts of fraud.

The FCA has now banned Clay and Clark, while also withdrawing the latter’s approvals.

In a statement the FCA said the pair were not “fit and proper” to carry out any regulated activity.

It said: “[Their] offences were committed over a prolonged period of time (over five years) and impacted a large number of individuals, many of whom were near retirement age.

“The total loss to consumers has been estimated to be approximately £33m.”

In July 2014 Clark pleaded guilty to two counts of forgery and in October 2014, she pleaded guilty to three counts of fraud.

Meanwhile in December 2014 Clay pleaded guilty to three counts of fraud.

Clay was jailed for 10 years and 10 months while Clark was sentenced to two years’ imprisonment, suspended for two years.

Clay had promised investors their money would be put into offshore property development schemes, and that their original investment sum was safe.

In reality he either spent the money on his lavish lifestyle or ploughed it into various other projects – all of which were hemorrhaging money.

Clay is said to have personally made almost £5m from the scam.

He and his partner Clark used marketing company Arck LLP to push unregulated financial products on individuals and IFAs.