FSCS payouts over Arck hit £2.8m

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The Financial Services Compensation Scheme has paid out around £2.8m over 94 claims in connection with collapsed property investment firm Arck, data provided to Money Marketing shows.

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

A Serious Fraud Office investigation led to former Arck partners Richard Clay and Kathryn Clark being charged with “dishonesty offences” in 2013. It found £50m of client money had been fraudulently invested through Sipps into Arck.

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.

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.

However, Arck investors were told by the FSCS in April last year they should expect delays in receiving any compensation payments as it investigated claims against advisers and gathered information from third parties.

The FSCS eventually began assessing claims against Arck and HD Administrators in September 2015.

Clay and Clark were banned by the FCA last month from working in any regulated financial services role.