Court greenlights payouts to victims of 24HR Trading Academy
A London court has ordered the distribution of funds seized by the Financial Conduct Authority (FCA) to hundreds of victims of a trading signals provider and its sole director who operated via social media platforms.
The FCA has secured £106,650 in cash to be paid to victims of 24HR Trading Academy Limited, who lost their money in the FX market after they were given unauthorized investment advice. The court order enables the regulator to distribute the recoveries on a pro rata basis to traders who suffered a loss in excess of £500.
Many individuals said that they lost substantial amounts of money and did not receive the promised returns. They also accused the academy of using aggressive sales tactics and misleading information to lure them into investing.
The court found that the activities of 24HR Trading Academy Limited, run by Mohammed Fuaath Haja Maideen Maricar, were unlawful as they had advised on investments without authorization, and made false or misleading financial promotions.
24HR Trading sent trading signals to clients, who were told they would make ‘significant profits’ if they followed the instructions sent via WhatsApp and other messengers. These paid recommendations involved CFDs contracts on currencies and commodities.
“Tackling financial crime and securing redress for victims is a priority for us. Consumers should always check our Register and be very wary of unauthorised firms, as they present a very high risk with no guarantee of compensation if things go wrong. Often funds invested are completely lost,’ the FCA said.
Maricar was ordered to repay losses but had his liability capped at £530,000. The FCA secured a ‘restitution order’ that would distribute these funds to those who have suffered a financial loss as a result of the alleged breaches.
The court said Maricar engaged in financial promotions, made misleading statements to consumers and carried out regulated activities in the UK without authorisation.
In addition to the monthly subscriptions he collected from the clients, the regulator claimed Maricar had earned commissions from a ‘partnered broker’ he recommended to sign up and place their orders through its platform.
The case was brought by the FCA in April 2020, which at this time had frozen £624,000 of the defendant’s assets.
