Читать книгу How To Become A Business Angel - Richard Hargreaves - Страница 71

Having described a hugely successful offering from a reputable promoter in Case Study 3, I will now illustrate the other extreme.

Arc Fund Management (in various guises) promoted a series of prospectus offerings to its 100,000 strong mailing list. A few of these were successful but many were not. They were characterised by high share prices and costs.

It transpired that the chief executive of Arc was taking huge personal benefits by buying shares cheaply in small formative ventures and selling them at large profits in their prospectus offerings. He was eventually disqualified as a company director having conned many people, myself included.

Arc Fund Management went into administration at the end of 2009 but it was not alone in being unscrupulous when it offered shares to the public, so do beware.