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Six found guilty in £2.7m boiler room scam

Six found guilty in £2.7m boiler room scam

The Financial Conduct Authority (FCA) has come out victorious in a criminal suit against six people, who were found guilty for their roles in a series of boiler rooms. 

The scam led to the loss of over £2.7 million of investors' funds. 

The defendants will be sentenced at Southwark Crown Court at a later date.

While three defendants were found guilty today, the other three had pleaded guilty earlier in the proceedings. 

Further details of the investigation and the identity of the defendants will be released by the FCA at a later date once the reporting restriction is lifted. 

The regulator said that defendant one was found guilty of one count of conspiracy to defraud, one count of fraud by abuse of position and one count of doing acts tending and intending to pervert the course of public justice, contrary to common law. The defendant also pleaded guilty to four counts of communicating an invitation to engage in investment activity contrary to the Financial Services and Markets Act 2000 (FSMA).  

Defendant two was found guilty of one count of conspiracy to defraud and three counts of communicating an invitation to engage in investment activity. The defendant was acquitted of one count of communicating an invitation to engage in investment activity.

Defendant three was found guilty of entering into or becoming concerned in a money laundering arrangement contrary to s328(1) of the Proceeds of Crime Act 2002 and one count of doing acts tending and intending to pervert the course of public justice, contrary to the common law.

Defendants four and five pleaded guilty to one count of conspiracy to defraud, contrary to common law. 

Meanwhile, defendant six pleaded guilty to one count of fraud by false representation and one count of communicating an invitation to engage in investment activity.

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