Profit Time

Fine of 400,000 pounds slapped onto solicitor and firm for aiding in share scam

London-based firm Atlantic Law’s senior partner has been banned, along with his firm, from working in financial services, and a fine of 400,000 pounds has been slapped on to them, for recklessly signing off adverts which had been issued by Spanish fraudsters. This action has been taken by the City watchdog. A Financial Services Authority decision came from the Financial Services and Markets Tribunal, stating that Andrew Greystoke has been recklessly signing off Atlantic Law’s approval of 50 UK investment advertisements, which had been issued by four unregulated Spanish stock broking firms. The charge was that no reasonable steps had been taken to make sure that the advertisements were fair and clear, and did not mislead customers – apparently there was reason to doubt that the Spanish firms would not be honest and reliable in their dealings with the UK consumers.

The Spanish firms are known to be boiler room share scam operators, and the FSA said that Greystoke accepted these Spanish firms, and despite having seen consumer complaints and negative press articles, had approved the advertisements nonetheless. What’s more, Greystoke was also aware of negative previous experience for acting for other Spanish boiler room clients.

The advertisements were purporting to sell shares of doubtful value. The FSA has also stated that the Spanish fraudsters had subjected 130 UK consumers to pressurized selling of high-risk illiquid shares in unlisted small companies. Furthermore, any UK consumers who had complained to the Spanish companies were not only threatened, but also blackmailed. More than 3 million pounds had been put in by these investors, which they will probably lose now.

So now Atlantic Law and Greystoke have been fined 200,000 pounds each. Greystoke was not available for comment. Margaret Cole, the director of enforcement and financial crime at FSA said that Andrew Greystoke and Atlantic Law had acted without integrity, and that they should be brought to task.

Tags: Financial