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Arck pair ordered to pay £562k following £50m fraud

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Former Arck partner Richard Clay must pay more than £344,000 to the Treasury for his part in the £50m fraud.

In a Southwark Crown Court hearing yesterday, Clay was ordered to pay £275,000 within 21 days and the remaining balance of his £344,244.07 confiscation order within three months.

His former co-partner Kathryn Clark was today ordered to pay £178,522 in compensation to victims of the fraud through a confiscation order. She must pay £30,000 within 21 days and the remaining balance within three months.

Clark was also ordered to pay a stand-alone compensation order of £40,000.

In October 2015 Clay was sentenced to 10 years and 10 months in prison while Clark was handed a two-year suspended sentence.

Money Marketing revealed in 2012 how investors faced losses of around £50m following the liquidation of Arck, a specialist property investment firm that invested pension savings through Sipp firm HD Sipp.

Clark was also banned from directorship for 14 years, while Clay was banned for 15 years.

The Financial Services Compensation Scheme began assessing claims against Arck and HD Administrators, which is liable for losses in relation to Arck investment schemes held in the HD Sipp, in September 2015.

At the time of publication it is unknown how much of the £50m investment will be recovered.

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