Following an application by the FCA, the High Court recently ruled that Xcore Capital Limited, an unauthorised forex firm, and broker, Mr Jonathan Chitty had carried on an unauthorised investment scheme.
Consumers were led to believe that Xcore would be trading their money on forex and equity markets, but instead majority of their money was used to fund an office in Mayfair, brokers’ wages and Mr Chitty’s lifestyle.
The High Court held that Xcore ran a deposit taking scheme without the proper FCA authorisation, and that Mr Chitty was knowingly concerned in the scheme.
The Court further requires Xcore and Mr Chitty to pay £917,231 (the full value of all outstanding sums owed to consumers) to the FCA. The FCA has said that it will distribute any funds it is able to recover to those consumer affected.