UK Financial Services Compensation Scheme completes Arjent investigation
Claims against Arjent have now been moved to FSCS’s claims processing team for assessment.
The UK Financial Services Compensation Scheme (FSCS) has provided an update regarding Arjent Limited, a firm which was declared in default back in April 2017.
Based on the available evidence and documents, FSCS says it has now completed its investigation into how Arjent went about its business. As a result, claims against Arjent have now moved to FSCS’s claims processing team for assessment.
Arjent Limited entered administration in February 2016, and in February 2017 the firm was placed into liquidation. Arjent Limited was declared in default by FSCS on April 27, 2017.
Arjent was a London based wealth management company that offered specialist stockbroking and investment management services to its clients. Arjent specialised in building bespoke investment strategies for its clients, which include both professional and retail investors. Arjent was also affiliated with a U.S. based firm, Arjent LLC.
The United States Securities and Exchange Commission (SEC) launched an investigation into Arjent and Arjent LLC in relation to alleged fraud carried out by firm’s CEO and chairman Robert P. DePalo. In May 2015 the SEC brought charges against DePalo alleging that he committed fraud by selling shares in a company called Pangaea Trading Partners and then misrepresenting to investors the value of Pangaea’s assets and how investors’ funds would be used.
The SEC alleged that Mr DePalo transferred $2.3 million of investor funds directly to his own bank accounts. In July 2018 Mr DePalo was convicted on a number of counts of grand larceny, money laundering and fraud.
