On June 14, the UK Financial Services Authority (FSA) announced that it had obtained its first criminal conviction for boiler room fraud. David Mason was sentenced to two years' imprisonment, having pleaded guilty at Southwark Crown Court to: counts of carrying on a regulated activity without authorization; making false or misleading statements, promises or forecasts; and money laundering. He was also disqualified for six years from being a director of any UK company.
The FSA referred to a related regulatory action, in which it had published a final notice (dated December 20, 2010) fining David Sinclair of Axiom Capital Limited, a corporate advisory firm, £68,000 (approximately $109,730) and prohibiting him from holding any significant influence functions in the future. Mr. Sinclair was found to have breached Principle 6 of the FSA's Statements of Principle and Code of Practice for Approved Persons.
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