Two financial advisers have been banned from working in financial services after pleading guilty to committing fraud and forgery.
The Financial Conduct Authority (FCA) has banned both Richard Clay and Kathryn Clark who worked for HD Administrators.
They were part of a group of independent financial advisers hired by Arck investments to market unregulated property development investments offering high returns with no risk to capital.
Arck lost about £45m of around 700 investors’ money between 2006 and 2011.
Both Clay and Clark were former partners at Arck and Clark was partner at HD Administrators.
In 2015 Clay, who was not an FCA approved person, was sentenced to 10 years and 10 months’ imprisonment.
He was charged with committing fraud and forgery offences by the Serious Fraud Office and Nottinghamshire police.
The FCA said Clay’s offences impacted a large number of individuals, many of whom were near retirement age.
Clay entered an individual voluntary arrangement (IVA) in 2013 and the administrator that handled the case was Manchester-based Freeman Jones.
Clark was also charged with fraud and forgery offences by the Serious Fraud Office and Nottinghamshire police.
She was sentenced to two years’ imprisonment suspended for 24 months, required to carry out 300 hours of unpaid work and disqualified from being a company director for two years.
The FCA said the total loss to consumers is estimated to be around £33m.
It also said both advisors demonstrated a serious lack of honesty, integrity and reputation.
Both Arck, the unregulated property investment vehicle, and HD Administrators entered liquidation in 2012.
Richard Rendle of Rendle & Co and Roderick Butcher of Butcher Wood were appointed as administrators to Arck in 2012.
The official receiver acted as the administrator during the liquidation of HD Administrators the same year.
Arck’s investors are being written to with offers of financial support by Yorkshire Bank.
The FCA said there is no suggestion the bank was affiliated with, or implicated in, the Arch investment schemes.