Arch's Farrell accused of taking '£3m in fees for investment valued at nil'

Arch Financial Products - headed by chief executive Robin Farrell - has been accused of taking £3m in fees for a deal involving the Arch cru funds which "was valued at nil", the High Court heard today.

The case against Farrell and Arch is being brought by SPL funds, which took over the failed Arch cru cells, on the grounds of conflict of interest and breach of fiduciary duty in Arch's role as investment manager. Claims that Farrell's firm pocketed a secret £3m fee relate to an investment made by Arch cru in heavily indebted student accommodation business Clubeasy through holding company Lonscale. Arch cru paid £21m for the business which lawyers for SPL argue was "worthless", and did not justify such a large fee for Arch or deal partner Foundations Capital, a British Virgin Islands-...