Victims of the Bayshore Nominees boiler room scam are to receive just 7p back for every £1 invested, according to the Financial Services Authority.
The regulator has applied for an order through the High Court to distribute more than £260,000 received from Aniz Kassimali Danji Manji, owner of Bayshore Nominees Limited, and Suresh Maganlal Bhowan, sole director of the firm, to victims of a share scam.
The High Court will consider the application on 13 January, with any funds distributed on a pro rata basis to victims.
Investors were encouraged to buy worthless shares through 'cold calls' from unauthorised share sellers Gatemore Securities and Enterprise Analytics Incorporated.
Bayshore, which held the shares, then sent out confirmation notes requiring payment from the investors and arranged the transfer of the shares to the investors, with the money eventually being moved to off-shore accounts.
The Financial Services Authority previously obtained a Court Order that Manji would return £1m to investors and Bhowan would pay £17,233.
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