14th August 2015
Property fraudsters involved in Arck unregulated investment scheme have taken a step closer to sentencing as their court battle with the Serious Fraud Office (SFO) restarts.
Former director of Arck, the £50 million failed property investment scheme that duped 750 investors, Kathryn Clark and Richard Clay pleaded guilty to fraud last year and were set to be sentenced in February.
However, the sentencing was postponed after Clay alleged the SFO had committed illegal acts during its investigation.
Now a ‘Newton hearing’ is set for 5 October at Southwark Crown Court. This hearing will see a judge consider evidence from both sides to determine who is telling the truth over the allegations, according to trade newspaper New Model Adviser.
The sentences received by Clay and Clark depend on the Newton hearing and their layers could even postpone the hearing until January next year.
The pair were charges with fraud and forgery in 2013 after an SFO and Nottingham Police investigation. They were charged with make false or misleading representations to Arck investors between 2006 and 2012.
A total of 750 investors put money into Arck, which offered plots of land with planning permission to investors, including sites in Cape Verde resorts.
It was liquidated in 2012 following the investigation and £50 million lost by investors.