RegulationOct 22 2014

Ex-Sense AR in police probe over fraud allegations

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Scottish police have launched an investigation into an alleged fraudulent investment scheme run by Aberdeen-based former Sense Network authorised representative Midas Financial Solutions Scotland, following a tip-off from the Financial Conduct Authority.

Police Scotland issued a statement to FTAdviser which confirmed it had been made aware of the alleged fraudulent scheme by the City watchdog.

It said: “A criminal investigation has been launched and enquiries are at an early stage. Anyone who thinks they may have been a victim of economic crime is asked to contact Police Scotland on 101.”

The firm is still listed on the FCA’s register. At the time of writing the Midas website was no longer available and both telephone numbers listed on the register for the firm were not operational.

The police began looking into the firm, led by financial advisers Alistair Grieg and Ian Towe, following an investigation by the regulator in August into short-term investments being offered.

Midas was an appointed representative of the Sense Network from September 2007 until August this year, although this relationship was ended without knowledge of the FCA investigation, according to Steve Young, chairman at Sense.

Mr Young told FTAdviser that he had no knowledge of what has subsequently been revealed to be an unauthorised deposit taking scheme.

He added: “Whilst we know very little about the alleged scheme, we can confirm that Sense has never been authorised to conduct deposit taking.

He added: “We understand that Police Scotland has written to investors to inform them of the investigation. In that letter, the police have confirmed that unauthorised deposit taking is not afforded the protection given to regulated products including recourse to compensation.”

Sense was not subject to the investigation by the FCA, and is not included in the ongoing probe by Police Scotland.

peter.walker@ft.com