FSA plans to repay the recovered amount to the victims, who had invested in the companies involved in the fraud activity, while continuing the investigation of the issue.
Reportedly, members of the public were cold-called from overseas by individuals saying that they worked for the following brokers: Rothman Capital, Bishop Capital, Bernam Shore and Investor Relations Corp, and encouraged to buy shares in a company called Eduvest Plc with the promise of a significant return on their investment.
The investors were also recommended to make payment into a UK bank account. Later they came to know that the shares of Eduvest were worthless.
Margaret Cole, director of enforcement and financial crime at FSA, said: “We are extremely pleased to be able to recover and return money to investors who have been persuaded to hand over their money as part of a share fraud scam. Such good news is rare for victims who deal with unauthorised firms, as the money usually disappears without a trace.”
