FSA hands £1m to UK 'boiler room' scam victims
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Esma denies need for new competitiveness mandate
MEP wants explicit requirement; Esma official says it’s already covered in existing rulebook
US regulators cut FRTB’s IMA capital hit by 59%, Isda finds
Trade body pushes for further changes to cross-product netting, default risk charge
US FRTB glitch could spit out negative capital charges
Effort to recognise risk diversification between IMA and standardised approach went too far
Euronext, LCH back Esma as exchange super-regulator
National oversight hurts Europe, exchange officials say – but some are not ready to accept a single watchdog
Double, but no trouble? CVA capital hit may lack clout
Industry opinion mixed around Basel III endgame derivatives charge
Amid debanking drama, banks try to say ‘no’, safely
A basic risk management tool – the ability to turn a customer away – has become a political football
Erba myth: will US banks choose new capital measure?
B3E gives US banks a dilemma – adopt expanded risk-based approach, or a new standardised alternative
Illiquid assets pricing still needs expert judgement, say banks
EU regulators want more transparency in valuations, but some asset prices remain elusive