Former Arck partner Richard Clay has pleaded guilty to three fraud charges at a hearing at Southwark Crown Court, following a joint investigation by the Serious Fraud Office and Nottinghamshire Police.
Sentencing is due to take place on 20 February 2015
Clay’s business partner Kathryn Clark pleaded guilty in July and October 2014 to three fraud charges and two counts of forgery. In July, Clay pleaded not guilty to all counts.
SFO head of fraud Jane de Lozey says: “This was a complex and thorough investigation involving financial products which appeared innovative but were in fact part of an elaborate scam. It is another example of the misuse of pension monies and highlights the vulnerability of investors to these types of frauds.”
In 2012 Money Marketing revealed how investors faced losses of around £50m after the liquidation of Arck, a specialist property investment firm that invested pension savings through Sipp firm HD Sipp.
The investigation found savers and IFAs had about £50m invested in Arck products between 2006 and 2012, when the firm went bust.
Early this year Yorkshire Bank – which provided banking to Arck investors – announced it would set up a support scheme to hand back money to investors.
The bank said investors would get their money back plus 2.5 per cent interest, in turn the bank will try to recoup the costs from Arck.