The UK’s Financial Conduct Authority (FCA) has initiated legal proceedings against nine individuals for their alleged involvement in an unauthorised forex trading scheme advertised through social media channels.
Fraud in pension savings schemes
Earlier, the FCA brought charges against three individuals accused of running a fraudulent trading scheme targeting pension savings, Finance Magnates reports. Christopher McGuire, Keith Williamson and Carla Walker face a number of charges, including fraud by misrepresentation and fraudulent trading, for allegedly persuading victims to invest in CFDs.
Victims were reportedly persuaded to invest their pensions in CFDs, which resulted in the defendants receiving significant commission and significant losses to the victims.
The FCA has accused McGuire, Williamson and Walker of misrepresenting clients as professional investors, resulting in losses of more than £8 million. The alleged activity spanned the period from January 2015 to February 2023. Williamson and McGuire are accused of using harmful trading strategies to generate excessive commissions. McGuire also faces charges of making false statements to investors.
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Unauthorised investment scheme via Instagram
Emmanuel Nwanze has been charged with planning an unauthorised investment scheme and communicating unauthorised financial promotions. According to the FCA’s allegations, from 19 May 2018 to 13 April 2021, Nwanze, along with Holly Thompson, used the Instagram account to post guidance on the buying and selling of CFDs, despite a lack of necessary authorisation. So.
CFDs are considered a high-risk investment vehicle that allows individuals to speculate on price movements of various assets, including foreign currencies.
In addition, the FCA claimed that Nwanze hired Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, and Eva Zapico to garner the Instagram account’s extensive fan base of support.
In response to the allegations, Thompson, Chris, Clayton, Goodger, Gormley, Oukhellou, Timlin, and Zapico all face charges of publishing unauthorised financial promotional communications.
The defendants are scheduled to appear at Westminster Magistrates’ Court on 13 June 2024.The FCA encourages anyone who believes they have suffered a loss as a result of this case to contact the FCA Consumer Contact Centre.