Council’s homes plan approved
ASOUTHPORT man has been disqualified as a director for 13 years after his investment firm collapsed owing participants more than £1.5m.
An investigation by the Insolvency Service found William David Clarkson, 66, ran Equitable Law Capital (ELC) “with a lack of commercial probity” by misusing funds and causing undue risks to investors.
The government body issued its sanction in October, three years after the failing business was wound-up by liquidators.
Initially marketed as a legal redress scheme, ELC was said to offer investors a return of 5.6-8.12% and marketing literature to investors said the investment was fully protected by insurance and funds would be spent on costs and disbursements related to the mis-selling of financial products.
Bosses at ELC would then lend these proceeds to a claim management firm, claiming the average settlement was initially £35,000, later revised down to £16,000.
In reality only a third of the money given over found it way to the second company and investors’ money was repeatedly used to repay others who had put money in.
Insolvency officials said there was no evidence to suggest the claims firm used by ELC had any skills or expertise in the field and it was only twice able to achieve claims settlements in excess of the “average” £16,000 figure advertised by ELC.
The vast majority of claims were not in respect of bond mis-selling, and settlements were so small as to not generate any profit share element.
Dozens of investors in the UK and Europe had put in tens of thousands of pounds by the time the firm collapsed, with several owed six-figure sums.
Among those to suffer the biggest losses, Debbie Clarke from Kent was owed £186,000 and William John Bowyer, of East Sussex, invested £135,000.
An inquiry estimated Clarkson, last known to be living in Threlfalls Lane, Southport, was paid almost £300,000 in ELC’s final year. Meanwhile, companies associated with a co-director got £123,6320 and the codirector £60,000; a marketing agent received £200,000 and a relative of Clarkson £28,000.
Describing those final payments, the Insolvency Service report states: “Aside from one loan of £120,000 made to a company associated with a relative of David Clarkson no funds were paid with any prospect of generating a return.”
It adds: “The current estimated position in the liquidation is a deficiency to investors of £1,347,875. This is increased to £1,551,518 if the full value of investor loan capital outstanding is included.”
THIRTY family homes will be built in Crossens after Sefton Council approved its own proposals.
The planning committee last month granted permission for the new development which will be built on unused land off Bartons Close, near the Plough roundabout.
The site is earmarked for housing in Sefton’s Local Plan but has to date remained undeveloped. The planning committee has now granted permission for a mixture of two, three and fourbedroomed houses to be built on the land, which is bordered by Fell View, Meadow Brow and Banks Road.
It will involve a new road being laid parallel to Bartons Close, with access from Fell View.
The homes would be the latest in a series to be built in the area, opposite a housing development that replaced the former Plough pub off Rufford road.
Earlier this year, plans were approved to build hundreds of homes on the former Philips and Vulcan factory in Balmoral Drive and on farmland off Bankfield Lane.
A public consultation on the Bartons Close proposal was attended by 51 people, 26 of whom left comments on a range of issues including access to the new homes, the need for them, traffic concerns, and the impact on existing properties.
Sefton Council’s application to build the homes stated: “The site is an allocated housing site and is therefore suitable in principle for residential development. It would contribute to the supply of housing in an area with a recognised shortfall”