A solicitor, Adrian Sam has been made bankrupt by the Financial Services Authority (FSA) because his previous law firm, Adrian Sam & Co (ASC), assisted an illegal overseas boiler room.
This follows the FSA's attempts to enforce a High Court ruling that ASC and its former partner, Mr John Martin, pay £360,000 to 63 victims of the boiler room. A bankruptcy order was also granted against Mr Martin in August last year.
Jonathan Phelan, FSA Head of Retail Enforcement, said:
"This case is a warning to others who act as a UK front for boiler rooms that the FSA will use its full powers against them where possible to recover losses for the victims of their illegal activities. We also urge consumers to always check that they are dealing with an authorised firm before parting with their money as this could make a huge difference when things go wrong."
The FSA is currently liaising with the trustees in bankruptcy, however it is unlikely that victims will get all their money back. Investors requiring more information can call the FSA consumer helpline on 0845 6060 1234.
Background
- More information on the background to this case including details of the earlier court proceedings and an investors' update can be found on the FSA's website.
- The boiler room was not authorised by the Financial Services Authority so investors do not have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS).
- 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.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.
