Update for investors in Arck LLP

Some investors in Arck LLP (Arck), an unregulated property investment vehicle that entered liquidation in February 2012, are being written to with offers of financial support by Yorkshire Bank.

Yorkshire Bank has agreed a support scheme for a number of people who invested in certain Arck investment schemes (within specific timeframes) and is contacting all known investors to establish whether they qualify for support within the scheme.

Arck used independent financial advisers to market unregulated property development investments (either directly or through SIPPs), offering very high returns with no risk to capital, to approximately 700 investors between 2006 and 2011. Arck lost approximately £45million of investors’ money, with investors seeing little or no returns.

There is no suggestion that Yorkshire Bank were in any way affiliated with, or implicated in, the Arck investment schemes, but simply provided banking facilities to Arck and received investors' money into accounts in its name. Investors claim to have lost their investment as a result of an alleged fraud perpetrated by Arck, but have been seeking redress either directly from Yorkshire Bank and/or from Arck via a claim in its liquidation.

The Financial Conduct Authority has worked closely with Yorkshire Bank to ensure a fair and early resolution for those investors who qualify for support within the scheme.

A number of criminal and civil investigations have been carried out in relation to the failure of Arck and the loss of investors' money. Investors can find out more about the Serious Fraud Office’s investigation, along with its most recent press announcement.

If investors want further information about Yorkshire Bank’s scheme, and who may be entitled to receive financial support, they should contact Yorkshire Bank, via its solicitors, Addleshaw Goddard LLP, by email to arckenquiries@addleshawgoddard.com or by telephone on 0113 209 2154, or by visiting www.ybonline.co.uk/arckinvestors.

The Financial Services Compensation Scheme to consider HD Administrators LLP and Arck LLP related claims

The Financial Services Compensation Scheme (FSCS) has announced that it will now consider claims against departed financial advisers that advised clients to invest in Arck LLP investments (including Estrela Santiago, Paradise Beach and Joyston). The FSCS will also consider claims against HD Administrators LLP, in its role of operator of the HD SIPP, including where the HD SIPP was used to hold Arck LLP investments.

If you believe that you have a claim against a departed financial adviser, and/or HD Administrators, in relation to Arck LLP investments, please contact the FSCS directly.

New scheme administrator of the HD SIPP

As scheme administrator of the HD SIPP, Mattioli Woods will now operate the scheme. It was previously administered by HD Administrators LLP.

This means HD SIPP members can now access and deal with their investments.

Mattioli Woods will contact each HD SIPP member with more information about this and to explain their options.

If you have any queries you should contact Mattioli Woods by calling 0116 240 8700 or emailing hdsipp@citytrustees.co.uk.

Mattioli Woods was appointed by the Official Receiver in the Public Interest Unit in Manchester, as liquidator of HD Administrators LLP. 

What else has happened

We suspended the operations of HD Administrators LLP on 22 March 2012, which prevented it from running the HD SIPP, dealing with members’ investments or paying out any funds.

This followed the arrest of two of the HD SIPP trustees, Kathryn Joy Clark from Nottingham and Richard Aston Clay from Leicestershire, by the Nottinghamshire Police. Mrs Clark was also a partner at HD Administrators LLP. Mrs Clark and Mr Clay were also former partners of Arck LLP – a property investment vehicle that entered liquidation in February 2012.

On 22 November 2013, Mrs Clark and Mr Clay were both were charged with fraud and forgery offences by the Serious Fraud Office and Nottinghamshire Police, who have been investigating allegations of fraud involving investments in relation to Arck LLP, HD Administrators LLP and other related companies.

On 4 July 2014, Mrs Clark pleaded guilty to two counts of forgery and on 3 October 2014 she pleaded guilty to three counts of fraud. On 19 December 2014, Mr Clay pleaded guilty to three counts of fraud.

Mr Clay and Mrs Clark are currently awaiting sentencing.

You can find out more about the SFO’s investigation, along with its most recent press announcement.

The court made a winding up order against HD Administrators on 14 June 2012.

You can find out more from HD Administrators LLP’s liquidator.