FCA Cracks Down on Unauthorised Forex Scheme Promoted by Influencers

Story Highlights

• Influencers charged for promoting unauthorized forex schemes on Instagram.
• FCA warns about risky CFD investments and encourages victims to report.
• The separate case targets fraudsters who stole over £8 million from pension savers.

The Financial Conduct Authority (FCA) has taken a strong stance against an unauthorized foreign exchange (forex) trading scheme promoted by social media influencers. Nine individuals now face legal action for their involvement.

Mastermind and His Methods

Emmanuel Nwanze is accused of orchestrating the scheme and distributing unauthorized financial advice. The Financial Conduct Authority alleges that, between May 2018 and April 2021, Nwanze, alongside Holly Thompson, used an Instagram account to guide Contracts for Difference (CFDs) without proper authorization. CFDs are complex financial instruments that carry a high degree of risk.

We've charged Emmanuel Nwanze, Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, Eva Zapico and Holly Thompson over the promotion of an unauthorised trading scheme. #FinancialRegulationhttps://t.co/5EP6A9J2vC

— Financial Conduct Authority (@TheFCA) May 16, 2024

Nwanze allegedly recruited influencers Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, and Eva Zapico to promote the Instagram account to their large followings. These seven individuals now face charges of promoting unauthorized financial products.

FCA Warns Investors and Encourages Reporting

The accused are due in court on June 13, 2024. The FCA urges anyone who suspects they may be a victim of this scheme to contact their consumer helpline.

This case highlights the growing concern surrounding the promotion of financial products by unqualified influencers. The Financial Conduct Authority is sending a clear message that such activity will not be tolerated.

Similar Case Targets Pension Savers

In a separate case reported by Finance Magnates, the FCA charged three individuals with defrauding pension savers through a CFD scheme. Kristofer McGuire, Keith Williamson, and Karla Walker allegedly convinced victims to invest their pensions in CFDs, generating significant commissions for themselves and substantial losses for the victims.

The Financial Conduct Authority claims the trio misrepresented clients as experienced investors, leading to over £8 million in losses between January 2015 and February 2023. The Financial Conduct Authority further alleges that Williamson and McGuire employed risky trading strategies to generate excessive commissions. McGuire also faces charges of making false statements to investors.

These two cases demonstrate the FCA’s commitment to protecting consumers from financial scams, both on social media and in traditional investment channels.