The FCA continues its quest to put an end to illegal investment operations that are taking place against the confines of its rules and regulations. After the FCA filed an application to the High Court, several individuals were issued orders yesterday in response to their part in executing an FX scam.
The perpetrators were operating through a Cyprus-based company under the name Noerus Investments Limited. According to the FCA website, orders were also issued to others who assisted in facilitating the scheme.
The allegations indicate that at least 1.2 million GBP were acquired by Noerus for the purpose of investment in the foreign exchange market. The funds were allocated from a total of 65 global investors. However, the funds associated with this case were apparently never invested in the FX market or any other form of investment whatsoever. The illegal operation was reportedly implemented by Noerus between December 2014 and November 2015.
FXTM Appoints Marcelo Spina as Global Head of PartnershipsGo to article >>
The FCA takes these occurrences very seriously, in an effort to protect investors from unlawful and unethical practices within its jurisdiction. The regulatory watchdog is vigilant in warning the public in cases where there is substantial evidence to suggest illegal activity.
This protective agenda was further clarified in a statement by Mark Steward, Director of Enforcement and Market Oversight: “The FCA will continue to use its powers to strike down firms carrying on unauthorized regulated activities without FCA approval, to recover losses caused by misconduct and to hold accountable all those involved, including facilitators.”
In addition to the orders that were issued to members of the Noerus operation and other facilitators, action was taken in order to retrieve the lost funds. The High Court issued a restitution order, requiring the defendants in this case to reimburse the investors involved with £1,230,298.41 in lost funds.
Current assessments show that not all assets have been retraced, which should lead to a shortage in the funds that must be returned. Therefore, the court devised a plan that will enable the FCA to provide the funds. Moreover, the High Court issued injunctions that prohibit any further illegal activities by these individuals.