FSA recovers £1m from boiler rooms

UK investors sent around £1.25m to two North American-based companies, Rocky Mountain Gold Mining Corporation and Rocky Mountain Gold Mining Inc. The FSA investigated as part of ongoing work in the area and, with the help of Canadian regulators, was able to freeze funds that had been sent by investors and put plans in place to refund the money. The FSA says boiler rooms are usually structured in such a way that they prevent enforcement action, but in this case investors were lucky and the FSA was able to step in. Jonathan Phelan, head of department at the FSA’s enforcement division, says...