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Categories:Advisers,Regulation

FSA secures first boiler room fraud conviction

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The FSA has secured its first boiler room fraud conviction.

David Roger Griffiths Mason has been sentenced to two years in prison and disqualified from being a director for six years after pleading guilty to 13 counts of carrying on a  regulated activity without authorisation, thee counts of money laundering and one count of making false or misleading statements, promises or forecasts.

Between November 2008 and May 2009 Mason co-ordinated the cold-calling and sale of shares in EduVest Plc. 32 people invested £270,000 believing EduVest would be listing on the PLUS stock exchange in the near future.

Victims were cold-called and offered shares in EduVest by unauthorised overseas firms.

Mason laundered the proceeds of the boiler room operation, directing some funds to the boiler rooms via accounts in Switzerland and the Seychelles as commission payments with the remainder sent to accounts controlled by Mason.

The FSA has also fined David Sinclair of Axion Capital Limited £68,000 after he unwittingly allowed Mason to use a bank account under his control to spread investor money to Mason and other boiler room fraudsters.

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