The FCA has not been shy in handing out lengthy prison sentences for perpetrators of financial crime. In its path to tackling and ending market abuse, the regulator has been actively investigating firms to seek out individuals and processes that may undermine market integrity.
This is evident in two most recent cases, where two pairs of individuals have been charged with over 10-years combined prison sentences for money laundering and crypto fraud. Speaking on these cases, Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated:
“Criminals need to be clear that there is a cost to committing crime and we will seek to make them pay…. We’re committed to working with our law enforcement partners to fight financial crime and taking forceful action against individuals who undermine the integrity of our markets.”
Reinforcing that the FCA is not letting anything slide.
A not so dynamic duo
A former research analyst at a well-renowned asset management firm, used his advantageous position and privileged access to confidential information to carry out an insider dealing operation. Running the operation in partnership with his sister, the pair used communications from investors to understand interest around plans to raise equity or sell large blocks of shares owned by existing shareholders. In minutes, they traded in shares of those companies across several accounts.
Through detection of suspicious patterns of trading and analysis of large sets of trading data, the FCA’s investigation uncovered 13 stocks traded between December 2019 and March 2021, which generated a profit nearing £1 million pounds. Alongside this, they uncovered a larger international money laundering scheme being carried out by the pair. The regulator found that 173 deposits were made into accounts, controlled by the two, from the UK to Albania, and included approximately £25,000 of cash found in two bags during a safety deposit box search. Commenting on the case, Smart stated that the two:
“…exploited their privileged position and the confidential inside information they had access to. They rigged the system to satisfy their greed.”
The individuals have been charged with a combined sentence of 11 years in prison, with the case being indicative of the FCA’s broader strategy to combat market abuse through criminal prosecutions. In its 2025 Strategy, the FCA outlined clear plans to ‘disrupt crime’ and said it will draw on domestic law enforcement and regulators to coordinate action against serious misconduct.
Trouble clearly comes in twos
The FCA has also been dominating the news cycle in its ambitions to dig out and reprimand crypto fraud. Between February 2017 and June 2019, individuals Raymondip Bedi and Patrick Mavanga ran a joint crypto fraud scheme, where they cold-called victims and sold them fake investments in crypto. This led to 65 investors being defrauded of a sum of £1,541,799. The pair have been also sentenced and will be serving a long total prison sentence, of 12 years.
Following in the same vein, the FCA and Metropolitan Police have joined forces to arrest another duo for running illegal crypto ATMs and money laundering, and the seizure of seven illegal crypto ATMs. Therese Chambers, Executive Director of Enforcement and Market Oversight, FCA, stated:
“There are currently no legally operated crypto ATMs in the UK, so using one only supports crime. We will continue to partner with law enforcement agencies to fight financial crime and protect consumers.”
Unauthorized crypto ATMs, and fraud in general is a growing issue, however, as the FCA continues to target it we may well see less of it appear. The FCA is determined to keep the market and financial landscape free of crime to protect consumers and the market.
FCA on a mission
The FCA is leaving no stone unturned in its fight against financial crime. In securing convictions for money laundering, insider dealing, and crypto fraud, the regulator is making clear its mission to “rebalance risk and deepen trust” in the market. While doing so it also encourages firms to place the right controls and frameworks needed to deter internal misconduct. In fact, firms should take this as a message from the regulator that financial crime will not go unnoticed and un-punished.
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