Kangs Solicitors are regularly instructed by company directors and employees who find themselves being prosecuted by the Financial Conduct Authority (‘FCA’) for involvement in alleged boiler room scams.
Frances Murray of Kangs Solicitors explains the nature of such fraud.
What Is A Boiler Room Fraud? | Kangs Financial Fraud Advisory Team
A “boiler room” fraud usually involves members of the public being ‘cold-called’ by telephone and induced to purchase worthless, overpriced or non-existent shares in investment schemes by brokers, some of whom are not always aware that the alleged ‘investment opportunities’ are worthless.
The ‘investment opportunities’ involve many commodities including land, diamonds, shares, bonds, wine, carbon credits, rare metals and other commodities.
Generally, although there can be exceptions, the selling companies have no authorisation from the FCA to sell and tempt unsuspecting investors with the promise of massive and unrealistic ‘guaranteed’ returns, which are totally fictitious.
More often than not investors raise the funds required from pensions and life savings to fund the investment.
What Investment Activities Do The FCA Regulate? | Kangs Complex Fraud Team
The following investment activities are regulated by the FCA under the Financial Services and Markets Act 2000:
- advising on investments
- advising on investments (except pension transfers/opt outs)
- advising on pension transfers/opt outs
- advising on P2P (peer-to-peer) agreements
- arranging (bringing about) deals in investments
- making arrangements with a view to transactions in investments
- dealing in investments as agent
- dealing in investments as principal
- providing basic advice on stakeholder products
- managing investments
- safeguarding and administering investments
- sending dematerialised instructions
- causing dematerialised instructions to be sent
- managing a UCITS (Undertakings for Collective investment in Transferable Securities)
- acting as trustee or depositary of a UCITS
- managing an AIF (Alternative Investment Fund)
- acting as trustee or depositary of an AIF
- managing an unauthorised AIF
- acting as trustee or depositary of an unauthorised AIF
- establishing, operating or winding up a collective investment scheme
- establishing, operating or winding up a stakeholder pension scheme
- establishing, operating or winding up a personal pension scheme
- bidding in emissions auctions
- operating a multilateral trading facility
- operating an organised trading facility
How We Can Help You? | Kangs Serious Fraud Solicitors
We have frequently defended both directors and employees who were unaware that their activities were not sanctioned by the FCA or that the commodities being sold were worthless or did not exist.
Cases of this nature require a legal team with specialist knowledge and extensive experience as they can often carry with them complex legal issues.
If you are being investigated by the FCA or any other authority we are able to assist with the interview process, pre charge investigation and the post charge court proceedings.
We can advise on FCA regulation and whether your business should be authorised by the FCA to trade in a particular area.
Kangs Solicitors’ complex crime and regulatory team provides a national service.
We have extensive experience of dealing with cases investigated and prosecuted by all the major prosecuting authorities such as the ARB, SFO, FCA, HMRC, CPS, Trading Standards, Environment Agency etc.
Who Can I Contact For Help? | Kangs Criminal Defence Solicitors
If you are an individual or a company, we are here to assist you manage your contact with the prosecuting authority and advise you on any criminal proceedings involving fraud and / or money laundering.
Our team of solicitors has a proven track record of assisting many individual and businesses achieve the right result following these criminal proceedings.
Our expert team of Solicitors can be contacted through the following: