The Financial Conduct Authority have won a case against Xcore Capital Limited.
At a High Court ruling, the Financial Conduct Authority won a case against unauthorised investment firm, Xcore Capital Limited and Managing Director of the company, Jonathan Chitty. Xcore and Jonathan Chitty must now pay just under £1 million to the FCA to be re-distributed to investors.
The firm was found to have carried out an unauthorised investment scheme that promised investors 6% annual return to investors who were told their money would be traded in equity markets and foreign exchange.
After taking at least £1 million off of investors, the money was used to fund an office in Mayfair, brokers wages and Jonathan Chitty's personal spending such as £102,000 on Cryptocurrencies, £24,000 on a Rolex watch, £58,000 on luxury goods and £20,000 towards his wedding.
The ruling means that Mr Chitty/Xcore must pay the FCA £917,231, which is the full amount of all outstanding sums owed to consumers, the FCA will distribute the money recovered from Mr Chitty and the scheme.
Mark Steward, Executive Director of Enforcement and Market oversight at the FCA stated that the prompt action of the FCA stopped the scheme in its tracks and prevented further losses.
A freezing order has been obtained against Xcore and Mr Chitty's assets as well as an injunction to stop the scheme selling investments regulated by the FCA.
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This article's information was sourced from: https://www.ftadviser.com/regulation/2019/05/22/fca-wins-case-against-unauthorised-investment-firm/?utm_campaign=FTAdviser+news&utm_source=emailCampaign&utm_medium=email&utm_content=