From: RegTech Analyst
The Financial Conduct Authority has obtained High Court approval to return £3.42m to compensate victims of a series of unauthorised deposit taking and collective investment schemes.
The schemes in questions were run between 2015 and 2017 by Samuel and Shantelle Golding and their companies Digital Wealth Limited also known as Digital Wealth Society (DWS) and Outsourcing Express Limited (OEL) also known as Kerchiing.
The FCA said the the schemes clamed to involve the online purchase of wholesale goods from China for onward sale and promised unrealistically high returns, in some cases up to 100% of the amount invested.
No significant trading was conducted and the schemes relied on a continuous flow of new investors to fund existing investors’ returns. Samuel and Shantelle Golding admitted to the court they were personally involved in these contraventions.
The schemes raised just over £15m from over 1,000 individual accounts.
“The FCA took action as soon as it became aware of these illegal schemes, preventing further losses to future investors who would be unable to exit the scheme before it inevitably collapsed,” said Mark Steward, executive director of enforcement and market oversight at the FCA.
“In this case, we managed to save some money for investors: too often it is too late. These firms were not authorised by the FCA and as we always say to consumers, if a scheme looks too good to be true, do not invest.
“We have worked very hard to identify people eligible to receive compensation from these schemes and are pleased to have been able to recover and return some of their money.”
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