FSA secures over GBP1 million for victims of share scam
9th February 2009The Financial Services Authority (FSA) has obtained a Court Order that Mr Aniz Kassamali Dhanji Manji will return GBP1m to investors and Mr Suresh Maganlal Bhowan will pay GBP17,233. These investors were victims of a share scam operated by overseas entities which sold shares to UK investors.
Mr Manji was the owner of Bayshore Nominees Limited (Bayshore) and Mr Bhowan was the sole director. Investors were encouraged to buy worthless shares during 'cold call' from unauthorised share sellers (boiler rooms) Gatemore Securities (Gatemore) and Enterprise Analytics Incorporated (Enterprise). Bayshore, which held the shares, sent out confirmation notes requiring payment from the investors and arranged the transfer of the shares to the investors. Bayshore then sent the money received from investors, first to other bank accounts, and then off-shore.
At a hearing held on 5 February 2009 at the High Court, the Honourable Mr Justice Floyd declared that Bayshore had broken the law by acting without authorisation, and that Mr Manji and Mr Bhowan had been knowingly concerned in this. It also declared that Gatemore and Enterprise had illegally promoted the shares. Bayshore, Mr Manji and Mr Bhowan agreed to the making of this Order.
Jonathan Phelan, head of retail enforcement at the FSA, said:
"We are pleased to have been able to secure the return of this money to consumers who invested with Bayshore. However, in most cases consumers will never see any of their money again. They should be careful to ensure that any firm they deal with is authorised, otherwise they stand to lose some or all of their investment."
Investors who have dealt with Bayshore should contact the FSA Consumer Contact Centre on 0845 606 1234 (referring to "Bayshore") with their details so they can be contacted in connection with any possible compensation.
