FCA to Compensate 24HR Trading Academy Victims

by Arnab Shome
  • The scheme operator had to declare bankruptcy after failing to pay the penalty.
  • The FCA initially brought the case against Mohammed Maricar in April 2020.
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Bloomberg
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On Friday, the UK's Financial Conduct Authority (FCA ) announced that it had secured the money to pay the victims of 24HR Trading Academy Ltd, an illegal contract for difference (CFDs) signals platform run by its sole director Mohammed Maricar.

FCA Arranges Fuds for 24HR Trading Academy Victims

The British regulator detailed that it has received the payment of £106,650 from the official receiver and is now seeking a High Court order for distribution. Now, it will directly contact victims of the fraudulent platform run by Maricar.

"Consumers that may have been impacted and are known about by the FCA will be contacted directly by the FCA, but all impacted consumers can also contact the FCA about the proposed distribution order," the FCA stated.

Offering FX Signals

24HR Trading sent trading signals to clients, who were told they would make 'significant profits' if they followed the instructions sent via WhatsApp and other messengers. These paid recommendations involved CFDs contracts on currencies and commodities.

The FCA first moved against the fraudulent business in September 2019 by issuing a warning and clarifying that the platform did not hold the necessary regulatory license. The British regulator brought its case against Maricar in April 2020 and froze his assets.

Further action against the fraudulent company involved a court order against Maricar ordering him to repay losses but had his liability capped at £530,000. The regulator then claimed that Maricar had earned commissions from a 'partnered broker' that he had recommended to sign up and place their orders through its platform.

However, Maricar failed to pay the penalty, resulting in a consecutive bankruptcy order against him obtained by the FCA.

"In March 2021, the High Court ordered that Mr. Maricar and his company pay £530,000 by way of restitution/compensation for the benefit of consumers," the latest announcement by the FCA noted.

"Mr. Maricar failed to pay the money ordered, so the FCA petitioned for his bankruptcy . In August last year, the High Court made a bankruptcy order against Mr. Maricar, and an official receiver was appointed over Mr. Maricar's estate."

FCA And Financial Scams

Meanwhile, the FCA is tightening its grip on the financial services industry's misdeeds. Last year, it blocked 8,582 financial promotions, which is a yearly rise of 1,400 percent, and published over 1,800 scam alerts. On top of that, the regulator is actively warning against fraudulent platforms and recently revealed that Sherlock Holmes inspires 25 percent of British investors who avoid scams.

Its action against the operators of a $3.8 million boiler room scam also increased the prison time of its mastermind by four years. Initially, Nascimento, who executed the fraud with his five associates, was jailed in 2018 for 11 years.

On Friday, the UK's Financial Conduct Authority (FCA ) announced that it had secured the money to pay the victims of 24HR Trading Academy Ltd, an illegal contract for difference (CFDs) signals platform run by its sole director Mohammed Maricar.

FCA Arranges Fuds for 24HR Trading Academy Victims

The British regulator detailed that it has received the payment of £106,650 from the official receiver and is now seeking a High Court order for distribution. Now, it will directly contact victims of the fraudulent platform run by Maricar.

"Consumers that may have been impacted and are known about by the FCA will be contacted directly by the FCA, but all impacted consumers can also contact the FCA about the proposed distribution order," the FCA stated.

Offering FX Signals

24HR Trading sent trading signals to clients, who were told they would make 'significant profits' if they followed the instructions sent via WhatsApp and other messengers. These paid recommendations involved CFDs contracts on currencies and commodities.

The FCA first moved against the fraudulent business in September 2019 by issuing a warning and clarifying that the platform did not hold the necessary regulatory license. The British regulator brought its case against Maricar in April 2020 and froze his assets.

Further action against the fraudulent company involved a court order against Maricar ordering him to repay losses but had his liability capped at £530,000. The regulator then claimed that Maricar had earned commissions from a 'partnered broker' that he had recommended to sign up and place their orders through its platform.

However, Maricar failed to pay the penalty, resulting in a consecutive bankruptcy order against him obtained by the FCA.

"In March 2021, the High Court ordered that Mr. Maricar and his company pay £530,000 by way of restitution/compensation for the benefit of consumers," the latest announcement by the FCA noted.

"Mr. Maricar failed to pay the money ordered, so the FCA petitioned for his bankruptcy . In August last year, the High Court made a bankruptcy order against Mr. Maricar, and an official receiver was appointed over Mr. Maricar's estate."

FCA And Financial Scams

Meanwhile, the FCA is tightening its grip on the financial services industry's misdeeds. Last year, it blocked 8,582 financial promotions, which is a yearly rise of 1,400 percent, and published over 1,800 scam alerts. On top of that, the regulator is actively warning against fraudulent platforms and recently revealed that Sherlock Holmes inspires 25 percent of British investors who avoid scams.

Its action against the operators of a $3.8 million boiler room scam also increased the prison time of its mastermind by four years. Initially, Nascimento, who executed the fraud with his five associates, was jailed in 2018 for 11 years.

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