18th July 2011
When the funds collapsed in early 2009, 20,000 private investors lost at least £120 million. These investors are currently awaiting details of a £54m compensation offer from the failed funds' administrator Capita Financial.
The Mail on Sunday reported that the funds' ringleaders completed the "questionable transaction" in late 2007. It appears the money used to finance this deal ultimately came from private investors' funds. Details of the transaction are buried deep in complex documentation.
Cru was a marketing firm fronted by Jon Maguire while Arch was a private equity firm. Arch Cru promoted a range of funds to advisers. Between 2006 and 2009 these advisers recommended 20,000 private savers to invest a total of £400 million into Arch Cru funds.