The U.K. Financial Conduct Authority has charged a group of five individuals with investment fraud. The allegations against Michael Nascimento, Hugh Edwards, Stuart Rea, Ryan Parker (previously known as Ryan Sell) and Jeannine Lewis come under a thorough investigation by the regulatory watchdog.
The group appeared in court today facing charges of conspiracy to defraud and offenses under the Financial Services and Markets Act of 2000 and the Fraud Act of 2006. Two individuals are also charged with “preventing the course of justice contrary to the common law”, while one was also charged with money laundering offenses.
The purported investment was in shares in a purported commercial development in Madeira
According to the FCA the group of individuals has been engaged in the sale and promotion of shares in Atlantic Equity LLC which is also known as Berkeley Brookes LLC. Between July 2013 and March 2014, the charged individuals have allegedly been involved in ‘boiler room’ operations via four companies.
ATFX Institutional Business Continues to Expand: Adding a New Prime BrokerGo to article >>
The firms First Capital Wealth Limited, Bishops of Mayfair Limited, Wallberg Dillion Reid Limited and Sterling Capital Corporation Limited have been operating from Docklands, London.
The FCA outlines that according to its findings the defendants have been involved in the operations of the above mentioned companies and solicited from 175 investors close to £2.75 million.
A boiler room scam tactic typically involves a call center which is operating under the cover of an allegedly legitimate financial investment company. After reaching prospective victims via phone the boiler room operators sell a questionable product to investors. The mode of operation of the scheme was depicted in the movie “The Wolf of Wall Street”.
The investment offered to the victims of the fraud in this case were shares in a purported commercial development in Madeira.
The trial of the group has been set for the 4th of September 2017.