The Financial Conduct Authority (FCA ) is urging victims of Ian James Hudson's illegal financial activities to come forward and claim compensation by July 3, 2024. The call comes after the Southwark Crown Court ordered Hudson to pay £220,710.14 in restitution to those affected by his fraudulent trading and carrying out regulated activities without proper authorization.

FCA Secures £220,000 in Victim Compensation from Convicted Fraudster

Hudson was previously convicted and sentenced to a total of 4 years in prison following an FCA prosecution in 2021. The court has now issued a confiscation order under the Proceeds of Crime Act 2002, requiring Hudson to pay the full amount as compensation to his victims.

Between 2008 and 2019, Hudson offered advice on investments, claiming to invest substantial deposits made by his clients on their behalf. However, during this period, he was not authorized by the FCA to provide these or any other financial services, as legally required.

“Mr. Hudson’s defrauding was calculated and persistent over a number of years, preying on victims who believed he was a financial adviser and trusted friend when he was neither of these things,” Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, commented back in 2021.

Moreover, Hudson assured his clients that their funds deposited with his business, Richmond Associates, would be invested in various financial instruments or used for specific purposes. In total, his clients deposited approximately £2 million with him, and the funds were used to pay off earlier clients or cover his lavish lifestyle.

In addition to the compensation order, the court imposed a default prison sentence of 2 years on Hudson. This means he would be liable to serve additional time if he fails to satisfy the terms of the confiscation order.

FCA Imposed Record Fines in 2023

The actions related to Hudson are just one of many examples of the FCA's recent increased enforcement activity. In 2023 alone, the regulator canceled 1,266 unauthorized firms and imposed a record amount of financial penalties totaling £52,802,900.

According to the latest data published a few months ago, the regulator also set a new record in the number of warnings against fraudsters and suspicious businesses. In 2023, it issued 2,286 alerts, 21% more than the 1,822 reported in 2022