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2 years in prison for illicit capital management and loss of 600 thous. pounds

2 years in prison for illicit capital management and loss of 600 thous. pounds

created Paweł Mosionek7 February 2019

British trader, Manraj Virdee, was sentenced by a British court to 2 years suspended prison for running an investment program without the required permits, numerous frauds and loss of investor capital worth more than 500. pounds.

Unlicensed management, fraud

In addition to his prison sentence, Virdee was also sentenced to 300 hours of community service. The judgment follows a notice filed by the British Financial Conduct Authority (FCA) in connection with the running of an investment program without any authorization with third party capital, which amounted to £ 600. In addition, the convict consciously misled investors "guaranteeing " in some cases the rate of return of 100%.

Mark Steward, Executive Director of Law Enforcement and Market Surveillance at FCA:

“The FCA's swift action nipped Mr. Virdee's deception in the bud and stopped it from spreading, which risked greater losses to a wider group of victims. FCA reminds investors to beware of anyone who is not authorized to conduct the business it offers. "

Virdee concluded a contract for managing 195 500 GBP on one of its clients based on spread betting, however, only 10 thousand was used. from this amount. The total sum amounted to 600 thousand, but over 450 thous. from this amount was lost through unsuccessful transactions and spent on the current expenses of the trader.

The defendant himself admitted in the verdict that his trade had in fact been "dramatically ineffective". The rest of the money has been confiscated and can be used as compensation for aggrieved investors.

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.