The Financial Services Authority has shown it will crack down on accountancy firms which are not aut...
The Financial Services Authority has shown it will crack down on accountancy firms which are not authorised to do financial services business after successfully prosecuting officials at two Midlands firms.
The accountancy firms, Dobb White & Co and Morris White & Co, were not authorised by the FSA to undertake financial services, but FSA evidence in the High Court suggested that in the region of $18 million had been taken from investors and placed in a potentially unlawful investment scheme.
"The FSA has been working together with the Serious Fraud Office and the Leicestershire Constabulary on this case," says Carol Sergeant, managing director of the FSA.
The FSA was granted interim injunctions in the High Court on 29 October against the two firms, which have offices in Leicester and Nottingham, and against two partners of both firms, Shinder Singh Gangar and Alan White.
These two individuals are already well-known to the FSA: In November 1998 the FSA commenced proceedings under the Banking Act 1987 prohibiting Gangar and White from accepting deposits from the public in breach of that Act.
"Our evidence suggests that Dobb White & Co, Morris White & Co, Mr Gangar and Mr White have not confined themselves to accountancy, but have been running what appears to be an unlawful investment scheme that has probably taken substantially in excess of $18 million from the public," she adds.
The injunctions - which will continue with their consent until trial or further order of the court - restrain both individuals from undertaking financial services business (regulated activities) as set out in the Financial Services and Markets Act 2000.
They are also restrained from disposing of, otherwise dealing with or diminishing the value of their assets.
Further investigations into their alleged activities continue.
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