The Financial Services Authority (FSA) has obtained interim injunctions at the High Court against UK-based Chesteroak Ltd, Bingen Investments Ltd, incorporated in Gibraltar, and Mr Samuel Nathan Kahn because it believes they have been involved in assisting overseas boiler room activities in the UK.
The injunctions will stop Chesteroak Ltd, Bingen Investments Ltd and Mr Kahn, from continuing their involvement in these activities and it freezes their assets and other assets under their control.
Chesteroak Ltd is believed to have either been dealing in investments as a principal or as an agent for others or was arranging investment deals without authorisation under the Financial Services & Markets Act 2000. The FSA also alleges that Bingen Investments Ltd was arranging investment deals and that Mr Kahn was knowingly involved in these regulated activities, also without authorisation.
Both Chesteroak Ltd and Bingen Investments Ltd appear to have been assisting a number of suspected boiler rooms based overseas who were approaching UK investors encouraging them to buy shares in UK companies.
Boiler rooms are unauthorised and act illegally by promoting and selling shares in the UK. In the majority of cases the shares promoted and sold are not listed on a recognised stock exchange so investors will have difficulty selling the shares.
Because Chesteroak Ltd, Bingen Investments Ltd and Mr Kahn are not authorised by the FSA, investors may not claim compensation from the Financial Services Compensation Scheme or make a complaint to the Financial Ombudsman Service.
The FSA's investigation is continuing.
