Fraudulent trading: Ian Hudson sentenced to four years' imprisonment
By Craig Weston
Between January 2008 and July 2019 Mr Hudson advised on regulated pensions, mortgages and other investments despite not being authorised by the FCA to provide these financial services. Additionally, rather than investing client deposits in financial vehicles as quoted, Mr Hudson used new client deposits for personal use and to re-pay existing clients.
Mr Hudson was sentenced to 4 years’ imprisonment for participating in a fraudulent business contrary to s.9 of the Fraud Act, as well as two additional terms of 14 months to run concurrently for each breach of s.19 FSMA, namely accepting deposits and investments in breach of s.23 of the Act. Confiscation proceedings are currently being pursued by the FCA and any sums recovered will be used to compensate victims.
For our clients, we would always encourage investors and potential investors to perform a check of the Financial Services Register to ensure your financial advisor is authorised by the FCA. This is also a stark reminder to individuals and businesses who themselves provide financial services that the FCA is making a real crackdown on those who are in breach of FSMA, including handing out prison sentences for those who do so in a persistent and calculated manner.
Anyone carrying on a regulated activity under FSMA 2000 is required by law to be regulated by the FCA. If you are considering undertaking an activity that might be regulated by the FCA or would like more information or are in need of specialist legal advice please contact Irwin Mitchell’s team here.
His Honour Judge Tomlinson sentenced Ian James Hudson to 4 years’ imprisonment for one count of fraudulent trading, with two additional terms of 14 months, each reflecting a breach of s19 FMSA, to run concurrently following his earlier guilty plea. This followed charges laid by the FCA namely carrying on a business, Richmond Associates, for a fraudulent purpose and carrying on regulated activities when not authorised or exempt.”
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