Compliance

FCA Bans Six Over £4.3 Million Investment Scam

Amisha Mehta, Deputy Editor, 2 November 2016

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The financial watchdog has prohibited the individuals from performing any function in relation to any regulated activity.

The UK’s Financial Conduct Authority has banned six individuals for their part in an unauthorised collective investment scheme, which led to over 100 investors losing just under £4.3 million ($5.3 million).

Between July 2008 and November 2011, Scott Crawley, Daniel Forsyth, Adam Hawkins, Ross Peters, Aaron Petrou and Dale Walker ran the unauthorised scheme through three "land banking" companies: Plott Investments (later Plott UK), European Property Investments (UK) and Stirling Alexander.

They were convicted last summer of offences including possession of criminal property, conspiracy to defraud, providing information knowing it to be false or misleading, and carrying out a regulated activity without authorisation. The individuals received sentences totalling more than 30 years, the FCA said.

Land banking companies divide land into smaller plots to sell it to investors on the basis that once it is available for development it will soar in value. However, the land is often in areas of natural beauty or historical interest, with little chance of it being built on.

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