A man appeared in court today (17 January) as the Financial Conduct Authority took its first criminal action against someone acting as an unlicensed consumer credit lender.
Dharam Prakash Gopee was charged after the FCA investigated him and three companies he controlled: Reddy Corporation Ltd, Speedy Bridging Finance Ltd and Barons Finance Ltd.
It is alleged Mr Gopee, 62, conducted regulated activity without authorisation over a numbers of years by entering into and administrating regulated credit agreements as a lender.
This financial service was previously licensed by the Office of Fair Trading until April 2014 when it became regulated by the FCA.
Mr Gopee acted as a lender of last resort and is alleged to have engaged with consumers who were often in difficult circumstances.
He is alleged to have regularly registered charges over the homes of borrowers to enable him to take possession of a property if the borrower failed to pay the debt.
The FCA believes Mr Gopee lent more than £1m over the past four years while neither in possession of a consumer credit licence from the OFT or equivalent authorisation by the FCA.
He appeared at Westminster Magistrates Court charged with offences under the Consumer Credit Act 1974 and the Financial Services and Markets Act 2000.
The case against Mr Gopee was sent to Southwark Crown Court for trial, and a plea and trial preparation hearing is provisionally listed to be heard on 14 February 2017.
damian.fantato@ft.com
