Carron is currently being investigated by City police following the collapse of his investment firm Primrose Associates. It has emerged that he misled some St James’s Place (SJP) clients that he was investing their money in SJP when he was directing the funds into his own investment vehicles.
John Kelmanson, the appointed liquidator of Primrose Associates, said that £4m of clients money was directed to Primrose Associates and Carron’s other failed firm Evaluate Technologies. He has said there is little chance of money being returned.
St James Place has offered £2m to clients who lost money after being misled by Carron in compensation.
However, it is now ramping up it action against Carron and launched debt collection procedures to recover its loan.
A spokesman for the firm said that it was using “standard in-house debt collection procedures” and the move was not in relation to the compensation it had offered investors.