RegulationOct 25 2013

Banned former adviser convicted over unauthorised advice

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Two former financial advisers have been convicted of giving unauthorised investment advice and deceiving clients following prosecution by the Financial Conduct Authority.

Gary Hexley and John Cooper, both former directors of the West Midlands-based Weston Financial Services, were arrested by the former regulator the Financial Services Authority with support from the West Midlands Police on 23 November 2011.

Mr Hexley had been banned from working in the financial services sector, but had continued to provide investment advice while concealing his lack of authorisation, bankruptcy and the FCA prohibition from clients.

Mr Hexley also dishonestly hid from clients the fact that their money was going into the Metatron Global Fund, a high-risk start-up fund based in Mauritius with no track record.

Mr Cooper was convicted of advising a client to invest £160,000 in the fund without authorisation and dishonestly concealing Mr Hexley’s ban.

Mr Hexley was convicted of one count of giving investment advice without authorisation and five counts of dishonestly concealing material facts from clients, but was acquitted of one count of each charge.

Mr Cooper was convicted of one count of giving investment advice without authorisation and one count of dishonestly concealing material facts from clients, and was acquitted of three counts of the latter.

Convicted on 23 October 2013, the pair will be sentenced on the morning of 14 November 2013 at Birmingham Crown Court.

Tracey McDermott, director of enforcement and financial crime at the FCA, said: “This pair of crooks thought they were above the law, but the judgement shows how wrong they were.

“[Mr] Hexley and [Mr] Cooper have shown utter disdain for a sector in which tens of thousands of authorised advisers work hard every single day for the good of their customers.”