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Six found guilty in £2.7m ‘boiler room scam’

After a prosecution from the financial regulator, six individuals have been found guilty over the scheme.

Six found guilty in £2.7m ‘boiler room scam’

Six individuals have been found guilty over a ‘£2.7 million boiler room scam’ following a criminal prosecution brought by the Financial Conduct Authority (FCA).

In a statement issued last night the FCA said three people had been found guilty over their roles in a boiler room investment scheme which resulted in £2.7 million of losses for investors.

Another three individuals have already pleaded guilty and will be sentenced at an upcoming date at Southwark Crown Court.

The identity of the defendants cannot be revealed because of reporting restrictions, the FCA said. These details, which include information about the investigation, will be released at a later date.

One defendant was found guilty of charges including conspiracy to defraud, fraud by abuse of position and intending to pervert the course of justice.

Defendant two was guilty of conspiracy to defraud and three counts of communicating an invitation to engage in investment activity.

The other defendants were found guilty of charges including money laundering and conspiracy to defraud.

The FCA prosecution follows another successful court battle by the regulator earlier this month where four individuals were found guilty over a cold calling investment scheme which lost investors £1.4 million.

6 comments so far. Why not have your say?

Johan Carstens

Dec 12, 2017 at 17:45

Why can't criminals be named and shamed? This would act as a deterrent, without which, other criminals might seek encouragement.

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Alan Selwood

Dec 12, 2017 at 18:14

Even better would be advance notice that perpetrators of all such crimes would get a mandatory 20-year prison sentence with hard labour, and no remission of sentence for any reason whatsoever.

(On French banknotes in the 1960s it stated that forgery would be punished by 20 years' hard labour, so there is a precedent from a country now subject to the European Court of Human Rights!).

Keep all suspects in custody until time of sentence. Then if found guilty, immediate dispatch to jail.

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Mary Walton

Dec 12, 2017 at 19:28

I look forward to reading more information about this fraud and the fraudsters' names, in the future. Meanwhile I agree with Alan that these criminals deserve long mandatory sentences and that the publication / advance warning of such sentences is the only effective deterrent.

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William Anderson

Dec 13, 2017 at 03:46

if these criminals have been found guilty in the courts their names should be published so people know who they are dealing with so much of this going on and the courts protecting their identities will only assist these people to carry this out in the future

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David J Robertson

Dec 14, 2017 at 09:41

The length of a prison sentence (and yes there should be one), IMO should be linked to the amount defrauded and the defendant "wiliness" to repay monies defrauded.

In this instance £2.7 million was defrauded by 3 people. Therefore a short prison sentence could mean the crooks are released, will nearly £1 million each.

Why should then benefit from wrong doing?

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laang lee

Dec 14, 2017 at 14:13

Not much about this scam here, we should read more after sentence. I'd like to read of Proceeds of Crime - confiscation of assets - plea bargain for repatriation of monies abroad etc. I've seen this with wine scam - none left... all spent.. and Carbon credits.. Money in foreign bank.

Bet they get less than 3 years, and all the money has vanished.

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