The former directors of the Arck scheme allegedly received payments of £4 million from the company entering into liquidation.
An annual report by joint liquidators Butcher Woods and Rendle & Co has revealed that former directors Richard Clay received around £3.6 million and Kathryn Clark received payments of £580,000 from the firm.
The report said neither was able to provide an adequate explanation for the receipt of the money.
Approximately 750 investors put £63 million into Arck, which offered plots of land with planning permission, prior to entering liquidation in June 2012.
Clark was arrested in March 2012 by Nottinghamshire Police on suspicion of fraud by false representation and money laundering, and Clay was also arrested. However, no charges have been brought.
The report said Clark and any assets she may have were subject to restraint and freezing orders.
Clay was declared bankrupt in May. The liquidators’ report reveals he was pushed in bankruptcy after being unable to pay costs relating to a Range Rover bought with money loaned from Arck.
Clay personally registered the £77,500 Range Rover Vogue, paid by Arck.
Clay disputed whether the money was a loan, arguing the funds used to buy the car were drawings in advance of Arck’s earnings, however a court ‘was satisfied that the payments made to Arck’s members in advance of profits was treated like a directors loan account’.
The report also revealed that the liquidators are trying to track down £24 million, which was paid to a Jersey-based firm called Arck Estrela which they understand used the money to buy property or land in Cape Verde. They have however realised £1.2 million from the sale of land in Canada.
Other claims outstanding include £585,856 from Integrity Financial Solutions, which is also in liquidation.
The investigations remain ongoing and they are unable to state whether they will lead to the recovery of monies due to Arck.
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