Arch says £27m claim against CEO 'bound to fail'

The chief executive of Arch Financial Products (AFP) has hit out at Capita after the board it appointed to administer the Arch Cru cells hit him with a £26.6m lawsuit.

SPL Guernsey claims Robin Farrell, CEO of AFP, "acted dishonestly in assisting Arch in relation to each of Arch's breaches of its fiduciary duties". It also said his conduct was "not honest by the ordinary standards of reasonable and honest people". Its claims relate to allegations that Arch used the cells' money to make "secret profits" of £3.6m from a total £26m investment in a property company called Lonscale. It has made a £20.6 claim for combined losses incurred by six of the funds' cells, while a further £6m claim has also been made for losses from disputed payments made by c...