Financial Conduct Authority
Unauthorised firm and directors to pay restitution to consumers
The High Court has consented to an order by which Samuel Golding, Shantelle Golding, Digital Wealth Limited and Outsourcing Express Limited will pay funds held by them to the Financial Conduct Authority (FCA) for distribution to investors. The funds were raised by the defendants in unauthorised investment schemes operated by them.
The schemes purported to involve the online purchase of wholesale goods from China for onward sale and promised unrealistically high returns, in some cases up to 100% of the amount invested. In fact, the schemes were an unauthorised collective investment scheme and illegal deposit-taking, in contravention of the Financial Services & Markets Act 2000. No significant trading was conducted and the schemes relied on a continuous flow of new investors to fund existing investors’ returns. Samuel and Shantelle Golding admitted to the Court they were personally involved in these contraventions.
The schemes raised just over £15m from over 1,000 individual accounts. The FCA took urgent enforcement action to stop it and prevent the disposal of the remaining funds. Of the £15m that was raised, £9.25m was paid out to investors as returns and the defendants spent about £2.7m, including significant sums on travel, hotels and retail goods.
The Court order confirms that Mr and Mrs Golding will pay all funds held by them to the FCA for distribution to investors.
As a result of this action, the FCA will take control of approximately £3.4m which will be distributed to affected consumers, leaving them with a loss totalling at least £2.7m.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, yesterday said:
'The FCA took action as soon as it became aware of this illegal scheme, preventing further losses to future investors who would be unable to exit the scheme before it inevitably collapsed.
'The FCA again reminds consumers not to invest in schemes being offered by firms that are not authorised by the FCA and that look too good to be true, like these ones. In this case, we managed to save some money for investors: too often it is too late.'
The FCA will write to all investors about what steps need to be taken in the distribution process. However, anyone that has invested and not previously been in contact with the FCA, should contact the FCA immediately by calling John Thorp on 020 7066 0316 or emailing firstname.lastname@example.org.
Notes to editors
- The FCA investigation commenced in September 2017 and the FCA took enforcement action almost immediately to preserve consumer funds.
- The Order of the High Court (by consent) was made on 28 June 2019. The order confirms that Mr and Mrs Golding accept that they personally contravened and were knowingly concerned in various contraventions of sections 19 and 21 of the Financial Services and Markets Act 2000 (FSMA). It also confirms that both DWL and OEL admit to contraventions of sections 19 and 21 of FSMA.
- The FCA has an overarching strategic objective of ensuring that relevant markets function well. To support this it has 3 operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
Latest News from
Financial Conduct Authority
Next steps for LIBOR transition in 2020: the time to act is now17/01/2020 10:25:00
The Bank of England (the Bank), Financial Conduct Authority (FCA) and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) yesterday published a set of documents, outlining priorities and milestones for 2020 on LIBOR transition.
FCA returns funds to land banking victims15/01/2020 12:25:00
The Financial Conduct Authority (FCA) has obtained High Court approval for a scheme to return £2.5 million to compensate victims of a series of unauthorised collective investment schemes.
The FCA commences civil proceedings in relation to alleged unauthorised deposit takers13/01/2020 12:25:00
The FCA has commenced civil proceedings in the High Court against Bright Managment Solution Limited [sic] (“Bright”), Soccer League International Limited (Soccer League International), Soccer League UK Limited (Soccer League UK), and senior individuals at these firms.
FCA acts to help customers get better rates for cash savings10/01/2020 13:10:00
The Financial Conduct Authority (FCA) is proposing to reform the easy access cash savings market.
FCA and Bank of England announce proposals for data reforms across the UK financial sector08/01/2020 15:10:00
The Financial Conduct Authority (FCA) and the Bank of England (Bank) yesterday outlined their plans to develop their data and analytics capabilities.
FCA fines former managing director £45,000 for failure to notify personal trades23/12/2019 12:15:00
The FCA has fined Kevin Gorman, a former Managing Director at Braemar Shipping Services plc (Braemar), £45,000 for failure to notify personal trades.
FCA secures confiscation order totalling over £170,000 against convicted fraudster20/12/2019 14:38:00
A confiscation order of £171,913.60 was made against Manraj Singh Virdee in Southwark Crown Court on 16 December 2019.
First-tier Tribunal upholds decision to fine Hall and Hanley Limited for data breaches and unauthorised copying of client signatures19/12/2019 12:25:00
The First-tier Tribunal (the Tribunal) has upheld a fine of £91,000 imposed on Hall and Hanley Limited (H&H) by the Claims Management Regulator (CMR), the former regulator for claims management companies (CMCs).
Announcement from John Swift QC inviting submissions from interested parties19/12/2019 10:25:00
The independent ‘lessons learned’ review into the Financial Services Authority (‘FSA’)/Financial Conduct Authority (‘FCA’)'s supervisory intervention on Interest Rate Hedging Products is currently underway.