FCA secures bankruptcy orders against participants in illegal share scheme
The UK Financial Conduct Authority (FCA) today provided an update on the case concerning Our Price Records (OPR).
Let’s recall that, in May 2020, following a trial, the High Court ordered the payment of nearly £3.62 million in restitution to members of the public who bought shares that were promoted unlawfully.
Today, the FCA explained that the defendants (Lee Skinner, Tyrone Miller, Clive Mongelard and Karen Ferreira) failed to satisfy this order. Subsequently, the FCA made applications to the court to petition for the bankruptcy of three of the defendants and bankruptcy orders were made against Lee Skinner, Tyrone Miller and Clive Mongelard (aka Clive Harris).
The Official Receiver (or a Trustee in Bankruptcy) will investigate the financial affairs of the bankrupts and administer their estates.
The fourth defendant, Karen Ferreira, has made an application to appeal the Judgment against her. Enforcement of this Judgment has been suspended pending the Court of Appeals’ decision.
Back in May 2020, the directors of Our Price Records (OPR), Lee Skinner and Karen Ferreira, should pay £3,619,352 and £2,792,889 respectively in restitution for their roles in the unlawful promotion of OPR shares to the public. The Court also found that Mr Skinner was aware that OPR was making false or misleading statements and dishonestly concealing material facts in its promotional material.
Marketing agents Clive Mongelard (aka Clive Harris), Tyrone Miller and Venor Associates Ltd (“Venor”), who operated under the name “Gemini”, are jointly and severally liable to pay £1,207,050 in restitution for their roles in the unlawful promotion of OPR shares and for arranging for investors to acquire shares in OPR without authorisation.
The Court also found that Venor advised investors on the merits of acquiring shares in OPR without authorisation and made false or misleading statements to consumers. Mr Mongelard was found to be involved in these breaches.
OPR was a start-up company which promoted other companies’ products through its website for a commission. After initially failing to secure any investment from high net worth or sophisticated investors through an FCA authorised firm, OPR sought to raise funds from retail customers through two share offerings. OPR promoted them through unauthorised marketing agents who telephoned members of the public.
The first share offering took place between October 2014 and March 2015 at 60p per share, and the second between March 2015 and November 2015 at £1 a share. A total of £3,619,352 was raised from 259 investors with individual investments ranging between £1,200 and £252,000.
OPR entered administration on 25 April 2017, when responsibility for the remaining funds passed to the administrators: Harrisons Business Recovery and Insolvency Limited.