Two forex agents banned over mis-used £9m
7 Oct 2020
Two foreign exchange agents have been banned for a total of 24 years after securing more than £9m from clients, only to use the funds to payback previous clients
7 Oct 2020
Peter Roebuck, from Berkhamsted, and Preston-based Francis Tarling both received 12-year disqualifications from acting as directors.
They were directors of a company called Concept Consultancy Services Ltd. Over a five-year period between May 2011 and May 2016, the company entered into private loan agreements with clients worth at least £9.1m.
Clients were promised that their funds would be used by a third party to conduct forex trades and that Concept Consultancy Services would make returns to the client to meet monthly interest and loan repayments.
However, the company began to struggle and entered into administration in September 2017 before being liquidated in August 2018.
A subsequent investigation by the Insolvency Service discovered several instances of misconduct.
The probe found that £9.3m of client funds was paid into two of Concept Consultancy Service’s bank accounts. However, at least £8.4m was used to meet the interest and loan repayments due to earlier clients.
Further enquiries discovered that at least 15 investors who entered into loan agreements after September 2015 received no repayments from Concept Consultancy Services.
At the date of the company’s administration, the foreign exchange firm had no funds in its bank account and owed at least £11.2m to 204 clients who were expecting contractual interest and loan repayments.
Rob Clarke, chief investigator for the Insolvency Service, said: ‘Our investigations proved that Roebuck and Tarling accepted millions of pounds from clients who thought their funds were going to be used for foreign exchange trades.
‘However, this was nothing more than an unscrupulous scheme and unbeknownst to investors, new money coming in went straight out to service the debts owed to previous clients.
‘Twelve years is a significant amount of time for Roebuck and Tarling to be banned from running companies, reflecting the severity of their misconduct, and this case illustrates that directors who fail in their duties will be removed from the corporate arena.’