The Financial Conduct Authority (FCA) has obtained court approval to reclaim £1.6 million from Argento Wealth Ltd (AWL) and its Director, Daniel Willis. This follows the FCA's pursuit of civil proceedings against AWL and Willis, targeting the recovery of investor funds associated with alleged unlawful investment schemes promoted by the firm.
High Court Approves Consent Order for Fund Return in AWL Case
The regulator had previously secured undertakings freezing AWL's and Willis' assets as part of its efforts to safeguard investors' interests. Now, with the High Court's endorsement of a consent order, the intention is to return the reclaimed funds to affected investors.
The FCA's allegations against AWL include the unlawful collection of approximately £2.8 million through deposits under loan agreements or as part of an unauthorized collective investment scheme. Additionally, AWL is accused of facilitating investments in EMB Fund Limited amounting to about US$9 million, which purportedly violated financial promotion restrictions. Furthermore, the FCA asserted that Willis was complicit in these illicit activities.
Legal Proceedings Continue as Court Navigates Fund Distribution
It's noteworthy that neither AWL nor Willis have admitted to the FCA's allegations that prompted the legal proceedings, which commenced on June 1, 2022. However, both parties have agreed to remit funds to the FCA for eventual distribution among investors. Nevertheless, the resolution of this case is far from over. Subsequent court hearings will determine the modalities and beneficiaries of the funds obtained through this agreement, a process expected to be time-consuming.
Explaining the rationale behind the settlement , the FCA highlighted its intention to prevent AWL's and Willis' remaining assets from being depleted by ongoing legal and living expenses. Without such an agreement, there would have been a substantial risk of investor funds being diverted towards covering legal fees, leaving little or nothing for the affected investors.
Despite this legal breakthrough, investors are anticipated to incur significant losses, underscoring the challenges associated with recuperating funds in cases of financial misconduct.
