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Raided Arck cash is stark warning for investors
Article date: 20/11/2013
Leading solicitor, Sunil Abbi, is helping track down millions of pounds thought to be missing from a failed investment company says the case is a stark reminder for investors to avoid schemes which look too good to be true.
Sunil Abbi, of Black Country law firm Higgs & Sons is working with the liquidators of Nottingham-based Arck LLP to recover tens of millions missing from the company's accounts.
Arck used money obtained through independent financial advisers, property agents and accountants to fund overseas property developments. Many investors used their pension savings to invest in the scheme.
Sunil said the case is a classic example of investors being lured in by the chance of eye-watering returns on their initial investments.
"I'm afraid this is simply a case of the old adage: If it looks too good to be true, it probably is.
Investors were promised something like a 50 per cent return, which is a large figure considering our high street banks are only offering around 1 or 2 per cent.
They invested some £60 million from their pensions and personal funds into unregulated property schemes in Canada and Cape Verde. Some investors sunk their whole life savings and retirement pot into these high risk investments."
When the alarm was finally raised, Arck had just £25 in the bank. Sunil worked with creditors to take urgent steps to place it into provisional liquidation and he has since been working with its liquidators and lawyers around the world to trace the missing assets. He has already succeeded in securing the appointment of a receiver in Canada to sell a large area of ski resort and has also helped to recover expensive vehicles linked to the company.
"The liquidators were tasked with picking up the pieces and finding the missing millions to offer some reimbursement to investors.
I have been assisting the liquidators in investigating and gathering in the company's assets wherever they are located. This matter involves a large amount of cross border insolvency, with detailed investigations continuing not just in the UK but also around the world," Sunil said.
Arck's owners are subject to an ongoing police investigation involving the Serious Fraud Office and have been released on bail.
The collapse of Arck has attracted widespread interest and has been debated in the House of Commons.
"These schemes can appear very attractive, particularly in the current economic situation. But I hope this case serves as an example to everybody about the need to be careful when making investments," added Sunil.
Higgs & Sons works from two offices in the Black Country - Waterfront Business Park in Brierley Hill and Kingswinford. The firm employs more than 200 people, which includes over 100 specialist lawyers.
For specialist advice relating to any insolvency issues, contact Sunil on 0845 111 5050 or email firstname.lastname@example.org