Arrest Made As UK's Financial Services Authority Continues Clamp Down On Share Fraud

The Financial Services Authority (FSA) yesterday took action against two individuals and seven businesses suspected of involvement in ‘boiler room’ share fraud activity.

With the assistance of the City of London Police, the FSA executed search warrants on three premises in London and Southend and one individual was arrested.  The FSA also served injunctions freezing assets up to £350,000 and restraining the unauthorised activities of the businesses and individuals involved.

The FSA investigation centres on two individuals who are suspected of profiting directly from the activities of a number of suspected overseas boiler rooms. 

No-one has been charged at this stage in connection with the FSA’s investigation, which is on-going.

Background

1. The FSA has been involved in cracking down on boiler rooms for a number of years.  More information on the FSA's role in tackling boiler rooms can be found here.
2. Margaret Cole, FSA enforcement director, described the FSA’s work to combat financial crime including share frauds and scams in her speech to the FSA Financial Conference on 27 April 2009.
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.