Two people have been found guilty of mis-selling shares in a healthcare company with another two pleading guilty for their involvement.
Samrat Bhandari and Dr Muhammad Aleem Mirza were found guilty for their roles in operating an investment scheme which led to more than 300 investors losing a total of just over £1.4m.
Meanwhile brothers Michael and Paul Moore pleaded guilty to offences in relation to the same scheme.
For periods between February 2009 and early 2014, brokers cold-called investors, many of whom were vulnerable and retired, and mis-sold them shares in Symbiosis Healthcare Plc, which had been set up by Aleem Mirza to provide "healthcare solutions".
Bhandari was a director of William Albert Securities Ltd, a company which acted as corporate advisers to Symbiosis and organised the selling of its shares while the Moore brothers were brokers directly involved in selling shares in Symbiosis to investors.
The shares were worthless but investors were promised large profits and claims were made about the investment opportunity through the operation and expansion of a network of medical clinics in places such as Dubai.
The Financial Conduct Authority said investors were misled directly, on the phone, in correspondence and in person, at annual general meetings, as well as through creating and publishing written statements and promotional material by or on behalf of Symbiosis.
Mark Steward, director of enforcement and market oversight at the FCA, said: "Misleading financial promotions relating to investment schemes cause untold harm to consumers.
"The FCA is determined to ensure those who are involved in setting up and operating schemes like this one, without FCA authorisation, are identified and held to account to the fullest extent permitted by law.
"In due course confiscation proceedings will be commenced, with a view to securing as much compensation as possible for those who have suffered a loss as a result of this criminal conduct."
Mirza and Bhandari, aged 51 and 44 respectively, were found guilty at Southwark Crown Court yesterday (30 November) while a third defendant, Albene Mendy, 57, was found not guilty.
They will be sentenced together with Paul and Michael Moore, aged 38 and 35 respectively, at Southwark between 19 and 20 December.
The Moore brothers pleaded guilty to various counts contrary to the Financial Services and Markets Act 2000, which were creating a false impression and carrying on a regulated activity without authorisation.
Additionally Michael Moore pleaded guilty to creating a false or misleading impression contrary to the Financial Service Act 2012 while a count of contravening the restrictions on financial promotions, contrary to the Financial Services and Markets Act 2000, was ordered to lie on file.
Bhandari was convicted of carrying on a regulated activity without authorisation and creating a false or misleading impression.
A count of contravening the restrictions on financial promotions, contrary to the Financial Services and Markets Act was ordered to lie on the file.
Mirza was convicted of creating a false impression, creating a false or misleading impression and publishing false or misleading statements, plus being a company director, contrary to the Theft Act 1968.
Mr Mendy was acquitted of creating a false impression, carrying on a regulated activity without authorisation and creating a false or misleading impression.
damian.fantato@ft.com
