Tory peer: Arch cru failure 'reminiscent' of Madoff scandal

A Conservative peer has drawn parallels between the collapse of Arch cru and the Bernie Madoff scandal, stressing the need for the regulator to do more to protect consumers.

Speaking during the second reading of the Financial Services Bill in the House of Lords, Lord Northbrook called on the FSA's successor bodies to pay more attention to investments described as ‘low-risk'. He said: "Arch cru was established in 2006 and was sold as a vehicle to provide low-risk cautious management funds. It is reminiscent of Bernie Madoff's venture. "Like all investment funds, it was regulated by the FSA. Needless to say, it invested in high-risk property, shipping and ferries." Bernie Madoff was sentenced to 150 years in jail in June 2009 for operating a Ponzi scheme...