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FCA charges sixth broker over alleged boiler room scam

A sixth man has appeared in front of the City of London Magistrates Court in connection to an alleged boiler room scam that has already led five others to stand in the dock.

Following an investigation by the Financial Conduct Authority (FCA), Charanjit Sandhu of Grays, Essex, appeared today (18 November) before the City of London Magistrates Court charged with conspiracy to defraud, together with offences under the Financial Services and Markets Act 2000 and the Fraud Act 2006.

The FCA said that the offences related to the promotion and sale of shares through a succession of four alleged "boiler room" companies, all of which traded from the Docklands area of London.

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The FCA had already charged five other defendants as a result of the investigation in June 2016. 

Previous court appearances related to the promotion and sale of shares in Atlantic Equity LLC  - formerly known as Berkeley Brookes LLC - between July 2013 and March 2014, through companies called  First Capital Wealth Limited, Bishops of Mayfair Limited, Wallberg Dillion Reid Limited and Sterling Capital Corporation Limited.  

The five that had already appeared in the dock at Southwark Crown Court had been named as 39-year old Michael Nascimento; 34-year old Hugh Edwards; 48-year old Stuart Rea; 23-year old Ryan Parker - previously known as Ryan Sell - and 49-year old Jeannine Lewis , all of whom live in London and the South East of England.

They were also charged with conspiracy to defraud, together with offences under the Financial Services and Markets Act 2000 and the Fraud Act 2006.

The FCA alleged the defendants were involved in the promotion of investment schemes that offered investors interests in a purported commercial development in Madeira in which, in total, 175 investors were reported to have lost approximately £2.75m. Their trial has been set for 4 September 2017.

The FCA said it could not provide any further comment or information at this time.

Mr Sandhu’s case was also sent to Southwark Crown Court.