The Financial Conduct Authority (FCA) has announced that it has obtained the funds to compensate the victims of 24HR Trading Academy Ltd. The illegal contract for difference (CFDs) signals platform was run by its sole director, Mohammed Maricar.
The UK watchdog has secured £106,650 from the official receiver and is now asking for High Court order for distribution to the victims of the fraudulent platform.
The regulator said in an official statement:
Consumers that may have been impacted and are known about by the FCA will be contacted directly by the FCA, but all impacted consumers can also contact the FCA about the proposed distribution order.
Background
The 24HR Trading platform provided trading signals to clients, promising significant profits if they followed the instructions sent via WhatsApp and other messengers, involving CFDs contracts on currencies and commodities. However, the platform did not hold the necessary regulatory license, and the FCA issued a warning against it in September 2019. The regulator froze Maricar’s assets and brought a case against him in April 2020, and the court later ordered Maricar to pay £530,000 compensation to consumers.
Maricar failed to pay the penalty and the FCA petitioned for his bankruptcy. The High Court made a bankruptcy order against Maricar in August 2022 and an official receiver was appointed over his estate.
The FCA is actively warning against fraudulent platforms, blocking over 8,500 financial promotions last year and publishing more than 1,800 scam alerts.
