The Financial Conduct Authority (FCA) has a won a case against an unauthorised brokerage which used investors’ money to fund its owner’s luxury lifestyle purchases.
The High Court found Xcore Capital Limited and its director Jonathan Chitty to have carried on an unauthorised investment scheme that brought in over £1 million from clients.
Consumers were promised their money would be traded on forex and equity markets to achieve a 6% annual return, but most of the assets went to towards funding an office in Mayfair, brokers’ wages and Chitty’s personal spending.
These included £102,000 spent on cryptocurrencies, £58,000 on luxury goods, £24,000 on a Rolex watch and £20,000 towards his wedding.
The Court declared that Chitty was knowingly concerned in the scheme, and ordered him to pay the FCA £917,231 – the full amount owed to consumers.
The decision follows an order issued in November to freeze his assets and those of the firm.
FCA executive director of enforcement and market oversight Mark Steward said: ‘Prompt action by the FCA stopped this scheme in its tracks and prevented victims incurring much greater losses.’