Financial Services Authority: Boiler Room Money Launderer Ordered To Pay £320,882

Michael McInerney, of Richmond, North Yorkshire, has been ordered to pay £320,882 by Southwark Crown Court for his role in a major boiler room share scam. The order was made on Tuesday 4 December.

McInerney acted as a banker for fraudulent share sales orchestrated by jailed boiler room operators Tomas, Kevin and Christopher Wilmot. The Wilmots controlled a syndicate that defrauded an estimated 1,700 investors out of £27.5 million. They were jailed in August 2011 for a total of 19 years.                                            

To put some distance between themselves and the money the Wilmots enlisted McInerney. McInerney opened bank accounts for three different companies (Rock Solid Asset Management, Worldwide Assets Limited and Universal Management Services) which were purportedly for property management purposes. In reality they were set up with the sole purpose of receiving the proceeds of boiler room fraud.

HHJ Taylor at Southwark Crown Court made a confiscation order in the sum of £320,882 to be paid within six months or serve a further 3.5 years imprisonment in default of payment. The Court ordered that the funds be used to compensate the victims of the Wilmot fraud.

Tracey McDermott, the FSA’s director of enforcement and financial crime, said:

“McInerney played a key role in this complex and elaborate scam, helping the Wilmots launder investors’ money by sending it overseas. It is only fair that his assets should now be used to provide defrauded investors with some compensation for their losses.”

Background

1. Michael McInerney was found guilty of money laundering and jailed for 4.5 years in April 2012.
2. The Wilmots were convicted of boiler room fraud in August 2011.
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.
4. The FSA will be replaced by the Financial Conduct Authority and Prudential Regulation Authority in 2013. The Financial Services Bill currently undergoing parliamentary scrutiny is expected to receive Royal Assent in late 2012 or early 2013, subject to the parliamentary timetable.