FSA hands £1m to UK 'boiler room' scam victims
Losses & Lawsuits
LONDON - UK regulators have secured a court order for the return of £1 million to investors caught up in a 'boiler room' scam operated by overseas entities selling worthless shares to UK investors. The Financial Servcies Authority (FSA) has obtained an order that Aniz Kassamali Dhanji Manji, owner of Bayshore Nominees, must return the money, while his co-conspirator and sole director of the firm, Suresh Maganlal Bhowan, will pay a further £17,233.
Investors received cold calls inviting them to buy shares from unauthorised short sellers Gatemore Securities and Enterprise Analytics. Gatemore and Enterprise sent out confirmation notes asking for payments. Bayshore then received the payments and these were spirited offshore via other accounts. Jonathan Phelan, head of the FSA's retail enforcement division, said he was pleased with the deal, but asked investors to remain vigilant of such cons as "in most cases consumers will never see any of their money again". The regulator has invited investors to contact it to secure their compensation.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Banks will not be frowned upon for discount window borrowing – Fed official
Risk Live: more banks have completed paperwork to access Fed lending facility than a year ago
Capital One puts OCC’s tough stance on mergers to the test
Proposed Discover deal should be approved but will go under the microscope, ex-regulators say
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
EU banks fear green asset ratios paint an unfair picture
Industry lobbyist clashes with lawmaker over usefulness of new sustainability disclosure
EU watchdogs to launch prop trader capital review in April
Prop traders say bank-style IFR rules are driving them out, but doubt EBA will suggest changes
Investors say new SEC disclosures may sit on shelf
Advisory committee questions value of rule 605 changes, even for retail investors
CFTC hears ‘call to action’ from swaps end-users on Basel III
Commissioner Pham mulls engaging with prudential regulators over capital hit on clearing
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high