The Financial Conduct Authority (FCA) has initiated legal action against nine individuals concerning their involvement in an unauthorised foreign exchange trading scheme that was promoted via social media channels.
Unauthorised Investment Scheme via Instagram
Emmanuel Nwanze stands accused of orchestrating an unauthorised investment scheme and disseminating unauthorised financial promotions. According to the FCA's allegations, spanning from May 19, 2018, to April 13, 2021, Nwanze, alongside Holly Thompson, purportedly utilized an Instagram account to dispense guidance on the buying and selling of contracts for difference, despite lacking the requisite authorization to do so.
CFDs, recognized as a high-risk investment instrument, allow individuals to speculate on the price movements of various assets, including foreign currencies.
Furthermore, the FCA asserts that Nwanze engaged the services of Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, and Eva Zapico to endorse the Instagram account to their extensive follower bases.
In response to these allegations, Thompson, Chris, Clayton, Goodger, Gormley, Oukhellou, Timlin, and Zapico each face a charge of issuing unauthorised communications of financial promotions.
The accused individuals are scheduled to appear before the Westminster Magistrates' Court on June 13, 2024. The FCA encourages anyone who believes they have incurred losses linked to this case to reach out to the FCA consumer contact centre.
We've charged Emmanuel Nwanze, Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, Eva Zapico and Holly Thompson over the promotion of an unauthorised trading scheme. #FinancialRegulationhttps://t.co/5EP6A9J2vC
— Financial Conduct Authority (@TheFCA) May 16, 2024
Fraud in Pension Savings Scheme
Earlier, the FCA brought charges against three individuals accused of perpetrating a fraudulent trading scheme that targeted pension savings, as reported by Finance Magnates. Kristofer McGuire, Keith Williamson, and Karla Walker are facing multiple charges, including fraud by false representation and fraudulent trading, for allegedly convincing victims to invest in CFDs.
Victims were reportedly persuaded to invest their pensions in CFDs, resulting in substantial commissions for the accused and significant losses for the victims.
The FCA alleged McGuire, Williamson, and Walker misrepresented clients as pro investors, resulting over £8M losses. Alleged activities spanned Jan 2015-Feb 2023. Williamson and McGuire accused of using harmful trading strategies for excessive commissions. McGuire also faces charges for false statements to investors.
