UK's Financial Services Authority Puts A Stop To Illegal UK Based Share Scheme

The Financial Services Authority (FSA) has been granted a permanent injunction preventing Treadstone Corporation Limited (Treadstone) from illegally promoting and selling shares to UK investors. Thedfred Lemont Shepherd, the sole director and owner of Treadstone, has also agreed not to take part in the same activities.

From May to September 2006, Treadstone and Mr Shepherd instructed agents to 'cold call' UK investors and encourage them to buy shares in a Finnish company, 'Tramigo Oy Limited'. After which, Treadstone issued false share certificates to investors and retained and distributed the proceeds of sale. Although the company is genuine, the shares were sold for more than their worth.

Jonathan Phelan, Head of Retail Enforcement at the FSA, said:

"We can, and do, take action to protect consumers from illegal share schemes, as is evident in this case. However, consumers must also be vigilant and check that the firm they are dealing with is authorised. If not, they risk losing some or all of the money they have invested.

“People should also check the FSA website for a watchlist of companies to avoid, which also 'cold call' and operate similar schemes."

Investors who have dealt with Treadstone or 'Tramigo Oy Limited' should contact Tim Schwilk at the FSA on 020 7066 0932 in connection with possible compensation.

Background

Investors who dealt with Treadstone and Mr Shepherd can not claim compensation from the Financial Services Compensation Scheme or make a complaint to the Financial Ombudsman Service.
This summary judgement follows an interim injunction secured by the FSA against Treadstone and Mr Shepherd in October 2006.
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.