Edit: I expanded this post after reading more carefully your construction and reminding a relevant reference. So it splits into 3 parts.

- B.H. Neumann's examples
- Comments on your construction
- (my original post: a construction with Mann)

**1 B.H. Neumann's construction**
Reference: *B.H. Neumann. Some remarks on infinite groups. J. London Math. Soc. 1(2) (1937) 120--127.*

He considered a strictly increasing sequence $(m_n)$, $m_n\ge 5$ tending to infinity, of odd numbers, and $X_n$ a copy of $\{1,\dots,m_n\}$, and $X=\bigsqcup_n X_n$. Let $c$ act as the 3-cycle $(123)$ on each $X_n$, and $t$ act as the full cycle $(1,\dots,m_n)$ on all $X_n$. Consider $\Gamma=\langle t,c\rangle$.

This is residually finite (since orbits are all finite).
Neumann checks that $\Gamma$ has a homomorphism onto $\mathbf{Z}$, mapping $t$ to 1 and $c$ to 0. Moreover, its kernel contains a smaller normal subgroup, the finitely supported even permutations preserving all $X_n$ (that is, $\bigoplus_n\mathrm{Alt}_{m_n}$). The quotient is the semidirect product $\mathrm{Alt}(\mathbf{Z})\rtimes\mathbf{Z}$, where $\mathbf{Z}$ acts by shifing.

This construction is an illustration of the fact that every finitely generated LEF group is quotient of a FC-central group, which can be chosen of the form $\bigoplus_n F_n$ with each $F_n$ finite and normal in the whole group.

Note that it also, by the way, provides examples of residually finite 2-generator groups that are (locally finite)-by-$\mathbf{Z}$ (hence poly-(virtually abelian)) and not virtually solvable (as your example and mine in (3) below), but unlike those, satisfy no group identity.

**2 Comments on your construction**
First let me rewrite it when $K$ is a simple group and $H=\mathbf{Z}$. Since the singletons $K/K$ play no role, let me remove it. So
$$X=\bigsqcup_{n\ge 1}K^n,$$
where $\mathbf{Z}$ acts on $K^n$ by shifting, and $K$ acts on $K^n$ by left multiplication at 0 (that is, $k\cdot (k_0,k_1,\dots,k_{n-1})=(kk_0,k_1,\dots,k_{n-1})$. These two operations on $K^n$ simply provide a simply transitive action of the wreath product $K\rtimes\mathbf{Z}/n\mathbf{Z}$.

When putting things together, one gets a group which, modulo its subgroup of finitely supported permutations, is the wreath product $K\wr\mathbf{Z}$, another typical example of a finitely generated LEF group that is not residually finite.

Actually, this is exactly the kind of construction one gets when one tries to make explicit the proof of the LEF fact mentioned above. A variant would consist in choosing, instead of the simply transitive action of $K\wr\mathbf{Z}/n\mathbf{Z}$, rather its "natural" action, which is on the disjoint union of $n$ copies of $K$, or even, for $K=\mathrm{Alt}_5$ on $n$ copies of $\{1,2,3,4,5\}$.

Another consequence is that these groups are not isomorphic to mine described in (3). Indeed, by construction, your group has a nontrivial FC-center, since it contains nontrivial finitely supported permutations (for an explicit example, let $t$ be the generator of $\mathbf{Z}$, and choose in $K$ two non-commuting elements $b,c$; then $[tbt^{-1},c]$ is supported by the first copy). While my example in (3) has a trivial FC-center.

**3** In a

note with Avinoam Mann (

*Some residually finite groups satisfying laws. Geometric group theory, 45–50,
Trends Math., Birkhäuser, Basel, 2007.*), we constructed a few residually finite groups including the following one, which answers your initial question:

For $A$ an abelian group, consider the free group $W_A$ on the generators $(x_n)_{n\in A}$ in the variety generated by the alternating group $\mathrm{Alt}_5$ (or any non-solvable finite group). (If you're not familiar with varieties of groups, this means the quotient of the free group $F$ on $(x_n)_{n\in A}$ by the intersection of all kernels of homomorphisms $F\to\mathrm{Alt}_5$. For instance, $W_A$ has exponent 30. It embeds into some power of $\mathrm{Alt}_5$ and hence is locally finite. By shifting the generators, we obtain an automorphism of $W_{\mathbf{Z}}$ and hence a semidirect product $G=W_{\mathbf{Z}}\rtimes\mathbf{Z}$, generated by 2 elements ($x_0$ and the generator of $\mathbf{Z}$).

Since $G$ is (locally finite)-by-abelian, it is obviously poly-(locally virtually abelian) (in two steps). It admits the wreath product $\mathrm{Alt}_5\wr\mathbf{Z}$ as a quotient and hence is not virtually solvable.

That $G$ is residually finite is proved as in the proof of Proposition 6 of the linked paper (cf Remark 7). Namely, consider an element $wt^n\neq 1$ and let us construct a finite index subgroup in which it does not belong. This is trivial if $n\neq 0$, so consider $w\neq 1$ in $W_{\mathbf{Z}}$. It involves finitely many letters, say in $\{x_i:-m<i<m\}$. Hence $w$ survives in the quotient $W_{\mathbf{Z}/m\mathbf{Z}}$ of $W_{\mathbf{Z}}$; this quotient is equivariant for the $\mathbf{Z}$-action, and hence $w$ survives in the quotient $W_{\mathbf{Z}/m\mathbf{Z}}\rtimes\langle t\rangle$ of $G$.
Consider the finite index subgroup $G_m=W_{\mathbf{Z}}\rtimes\langle t^{2m}\rangle$. Then in restriction to $G_m$, $w$ survives in the quotient $W_{\mathbf{Z}/m\mathbf{Z}}\rtimes\langle t^m\rangle$, which is actually a the direct product $W_{\mathbf{Z}/m\mathbf{Z}}\times\langle t^m\rangle$. Hence it survives in its finite quotient $W_{\mathbf{Z}/m\mathbf{Z}}$.

Certainly your construction is closely related. Indeed, every group satisfying ($\star$): generated by two elements $t,x$ such that the normal subgroup generated by $x$ embeds into a power of $\mathrm{Alt}_5$ is a quotient of the above $G$, almost by definition. So your group is quite likely to me a quotient of mine. I haven't checked if ($\star$) holds for your construction but it seems true or close to be true.

[added note 1: it's very close to be true. Indeed suppose that one erases the first two copies, namely $K$ and $K\wr\mathbf{Z}/2\mathbf{Z}$ (this amounts to taking the quotient by a subgroup of order $2|K|^3$, when $K$ is simple), and one finds $b,c$ generating $K$ such $\{b,[b,c]\}$ also generates $K$. Then the group of your construction (at least after modding out these first two copies) is generated by $t$ and $btct^{-1}$, and thus is a quotient of $W_{\mathbf{Z}}\rtimes\mathbf{Z}$.]

[added note 2: the FC-center if this group is trivial, i.e., this group is ICC: indeed, if we have $wt^k$ with $w\neq 1$, then the $t^n(wt^k)t^{-n}=(t^nwt^{-n})t^k$ form infinitely elements, since they eventually have disjoint supports. Similarly, $(t^nwt^{-n})t^k(t^nwt^{-n})^{-1}$ form infinitely many conjugates of $t^k$ when $k\neq 0$. Since your groups have an infinite FC-center, this shows they are very different, anyway.]

(By the way, this work with Avinoam was initiated on sci.math.research, an kind of ancester of this site).