SIB has investment scheme stopped

THE Securities and Investments Board went to the High Court yesterday to stop two companies and two individuals based in Leicester offering investment management services to the US, writes John Willcock.

Earlier in the week the investment regulator had issued proceedings against Elforest Investments, Richard Gunter (also known as Richard Davenport), Robin Grove and Anglo International BI, under section 6 and section 61 of the Financial Services Act. None of the four was authorised to conduct investment business under the FSA.

The SIB yesterday appealed to any investors who had dealings with the four to contact its offices as soon as possible.

In the earlier proceedings the SIB alleged that the four were 'involved in an unlawful scheme operated from offices in Leicester, and with addresses in York, Gibraltar and the USA, whereby investment management services were to be offered to investors in the USA by trained sales staff who would make unsolicited calls by telephone.'

The SIB also alleged that the scheme was advertised in a brochure issued in breach of the advertising provisions of the FSA.

Yesterday the defendants gave undertakings in the High Court not to conduct investment business, not to make unsolicited calls and not to issue investment advertisements pending trial.

No court date for the SIB's civil action has yet been set.

Under the FSA investment business can only be carried out by an authorised person, or someone exempted from authorisation. The FSA also bans 'cold calling' and advertising by non-authorised people.