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
SEC cyber rules risk creating web of confusion and costs
Proposals would require breach notifications, public disclosures and annual cyber assessments
Indonesia readies close-out netting after passing P2SK Law
Bankruptcy law changes remove close-out netting obstacles
Behnam comments fan JSCC hopes for US client clearing
Japan clearing exec welcomes CFTC chair’s pledge to keep discussing OTC clearing status for non-US houses
Top 10 operational risks: The umpire strikes back
Tougher regulatory enforcement, new consumer rules and rise of ESG are ringing alarm bells
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended
How Finma milked Credit Suisse’s CoCos to close UBS deal
An unusual clause in Swiss AT1 bonds allowed them to be written off, but could others follow suit?
Fed’s climate stress test whips up storm for banks
Long-awaited US climate risk exercise puts tough pressure on banks’ data and models
