The High Court has issued an injunction against an unauthorised foreign exchange investment scheme and ordered defendants to pay out £1.2m to cover investor losses.
Noerus Investments took money from 65 investors, none of which was used for foreign exchange trading or any other type of investment.
High Court judge Christopher Pymont declared Noerus Investments and other persons carrying on business under the name Noerus Capital in contravention of FSMA for unlawfully promoting and purporting to operate a managed foreign exchange trading facility between December 2014 and November 2015.
The High Court judgement followed an application from the FCA.
The court also issued injunctions to restrain further contraventions and made a restitution order to cover the loss suffered by investors, but the FCA says it has not yet identified sufficient assets to cover the full amount and there will likely be a shortfall that investors can recover.
The court approved an FCA scheme to return all sums to investors and also continued a freezing injunction against Noerus Investments to assist in the recovery of any further funds.
FCA director of enforcement and market oversight Mark Steward says: “The FCA will continue to use its powers to strike down firms carrying on unauthorised regulated activities without FCA approval, to recover losses caused by misconduct and to hold accountable all those involved, including facilitators.”
Other unauthorised parties whose actions facilitated the scheme have already reached a settlement with the FCA.