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FCA bans Arck partners over £50m fraud


The FCA has banned the individuals behind a £50m fraud which invested client money via Sipps into collapsed property investment firm Arck.

Former Arck partners Richard Clay and Kathryn Clark have been banned from working in any regulated financial services role.

Arck invested clients’ pensions through Sipp firm HD Administrators and other related companies, and was liquidated in 2012.

The Serious Fraud Office and Nottinghamshire Police charged Clay and Clark with dishonesty offences in November 2013.

Clay pleaded guilty to three counts of fraud and was sentenced to 10 years and 10 months in prison, while Clark pleaded guilty to two counts of forgery and three counts of fraud. She was given a suspended sentence of two years.

The FCA says: “The FCA has concluded both Mr Clay and Ms Clark are not fit and proper to carry on any function in relation to any regulated activities.

“In addition to banning Ms Clark, the FCA has also withdrawn her FCA approval in relation to HD Administrators. Mr Clay was not an FCA approved person at HD Administrators, nor has he been an FCA approved person since 2005.”

Earlier this year, Clay was ordered to pay over £344,000 as part of a confiscation order relating to the fraud. Clark was ordered to pay £178,522.

The Financial Services Compensation Scheme began assessing claims against Arck and HD Administrators in September 2015.



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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 […]


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Former Arck partner Richard Clay has been sentenced to 10 years and 10 months in prison for his part in a £50m fraud. His fellow ex partner Kathryn Clark was handed a two year suspended sentence. In December 2014, Clay pleaded guilty to three fraud charges following a joint investigation by the Serious Fraud Office […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. “The FCA has concluded both Mr Clay and Ms Clark are not fit and proper to carry on any function in relation to any regulated activities.” No s**t Sherlock!

  2. Of course the FCA can take no responsibility for any failures to recognise such poor practices prior to clients losing 50 million as this sort of micro management is beyond any reasonable scope.

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