The Financial Services Authority has secured a court order against Sinaloa Gold and one of its directors, Glen Lawrence Hoover, a US resident, which will see some of their lost money returned to 79 UK victims of a boiler room scam.

A court has ruled that Sinaloa had offered shares to the public through boiler room fraudsters, and without a prospectus. It also ruled that Hoover was knowingly concerned in Sinaloa’s breaches. 

Both Sinaloa and Hoover were ordered to pay a total of over £1 million (about $1.5 million) to the FSA for distribution to the victims. In December 2010, shortly after becoming aware of the scam, the FSA obtained an injunction and freezing order against Sinaloa and Hoover securing £127,000.