FCA bans two directors over £50m investment fraud

In 2013, Richard Clay and Kathryn Clark were charged with dishonesty offences by the Serious Fraud Office and Nottinghamshire Police after investors lost a total of £50m.

In 2014, Clark pleaded guilty to two counts of forgery and three counts of fraud.

On 19 December 2014, Mr Clay pleaded guilty to three counts of fraud.

Mr Clay was sentenced to 10 years and 10 months’ imprisonment and Ms Clark was sentenced to two years’ suspended imprisonment for their offences.

The FCA concluded that both individuals "are not fit and proper to carry on any function in relation to any regulated activities".

In addition to banning Ms Clark, the FCA has also withdrawn her FCA approval in relation to HDA. Mr Clay was not an FCA approved person at HDA, nor has he been an FCA approved person since 2005.