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Law firm writes to 540 investors over Arck losses

Law Firm Foot Anstey has written to 540 investors in liquidated specialist property investment firm Arck LLP to offer legal advice over recovery of possible losses.

Money Marketing revealed in March a liquidator had been appointed to property management firm Arck LLP following an application by investors to freeze the firm’s assets in December. The same month, two individuals were arrested and bailed following allegations of fraud relating to the firm.

The 540 investors were invested in a closed ended property portfolio through Arck LLP or Arck subsidiary Euro-Balkan Properties.

A Cepp is an investment whereby the investor receives a non-interest bearing loan note to return the capital investment and a share of profits dependent on the success of the project through dividends. The EBP scheme was set up to develop potential hotel sites overseas.

The Foot Anstey letter, mailed on Friday, informs investors that it is considering investigating how investments have been structured and flow of funds, to find reasons why the projects have not been completed, to consider the merits of legal options to maximise recovery and to recommend specific courses of legal action. None of the investors have seen any return on their investments to date.

Regulatory Legal is also acting on behalf of over 100 Arck investors and their IFAs.

Arck operated a scheme where funds were obtained through IFAs, property agents and accountants were used to facilitate foreign property developments. Many investors used their pension savings to invest in the scheme through Sipp firm HDSipp.

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Comments

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

  1. A liquidator will find and realise what assets there are left. If the liquidator wants to litigate to recover other assets (from the directors, say), and consider it worthwhile, then they will do so.

    So what’s the point of this law firm’s actions, other than for fee generation?

  2. I agree. It may be better to go after the greedy IFAs

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