Financial Conduct Authority  

FCA calls on ex-adviser's money laundering victims to come forward

FCA calls on ex-adviser's money laundering victims to come forward
 

The Financial Conduct Authority has urged victims of an ex-investment adviser to come forward in order to ensure they are part of a claim for compensation.

Richard Faithfull was sentenced last year to five years and ten months in prison after being convicted of money laundering as part of an organised crime group.

The FCA said at the time that Faithfull was able to use the knowledge gained from working as a regulated investment adviser to help the fraudsters defraud their victims.

Article continues after advert

The victims were tricked into believing their investments were generating returns by fictional 'dividend' payments from bank accounts controlled by Faithfull.

The court will also make a confiscation order against Faithfull, once it has determined how much be benefitted and the value of his current assets. A date has been set at Southwark Crown Court on October 13 for the final hearing.

The FCA has today (August 19) encouraged Faithfull’s victims to come forward before September 12 in order to be part of any resulting claim to compensation.

Executive director of enforcement and market oversight at the FCA, Mark Steward, said: “Mr Faithfull showed little compassion for those affected by his crimes and I want to ensure that anyone who may have lost money as a result of his offending is able to submit a claim for compensation.”

The FCA has asked anyone who made payments to the following bank accounts between June 1 2017 and August 1 2018 to contact them:

  • Faithfull Investments Limited (63019667; 73188825; 43871401; 80389994; 33260763; 20331791; 55420660; 56129860; 56130560; 56130968; 56932766);
  • Global Edge Consulting Limited (20051247, 30656960);
  • AG Capital Limited (20056281);
  • Meadows Financial Limited (20064365)
  • SFM Management Limited (20064349);
  • Corbett and White Limited (30917160); and
  • AVE Star FZE (1015338763901, 1025338763902 and 1025338763903)

Only those who transferred money during those dates will be entitled to a claim for compensation, as only victims who have lost money as a result of the crimes Faithfull has been convicted of can apply.

To avoid detection, Faithfull had relocated to Ukraine where the FCA said he lived “a life of luxury” whilst continuing his criminal activities and enlisting the assistance of local criminal groups abroad.

Faithfull had previously pleaded guilty to the money laundering offence on April 16 this year, and put forward a basis of plea that sought to minimise his role in the offending, however the FCA did not accept this.

The matter was therefore listed for a Newton hearing (used when two sides offer such conflicting evidence that a judge sitting alone tries to ascertain the truth), to determine the basis upon which he should be sentenced. 

Following a four-day hearing the judge rejected the submissions made by Faithfull’s team and accepted the FCA’s statement of the case.

Following his arrest, he “spun a web of lies to try and throw the FCA off the case” but at his hearing he admitted he was a “thoroughly dishonest person”, the regulator added.

The sentencing judge said this was “serious offending” which was linked to the “human misery caused by boiler room fraud” and that “money coming in [to accounts controlled by Faithfull] was not being invested, it was simply being slaughtered”.