Brokers target vulnerable clients in investment scam
Four defendants have been found guilty following a prosecution case brought by the Financial Conduct Authority (FCA).
Dr Muhammad Aleem Mirza and Samrat Bhandari ran were behind an investment scheme which saw over 300 investors lose a cumulative total of £1.4 million.
Offering respondents shares in Symbiosis Healthcare, the brokers would target older and often vulnerable investors, promising large profits.
However, whilst the pair claimed that the rewards would be significant, the assertions made regarding the investment opportunity were false, with the shares effectively worthless.
Two additional defendants, Michael and Paul Moore were also found guilty at a previous hearing. In offences that were related to the same investment scheme, the two brothers pleaded guilty, with all four due to be sentenced later this month.
Commenting on the case was Mark Steward. The Director of Enforcement and Market Oversight at the FCA drew attention to the risk of consumers being targeted, as well as striving to ensure that those involved in setting up similar schemes are held accountable.
“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.”