2 years ago
268 FinanceFeeds -
A joint investigation between the Financial Conduct Authority and the City of London Police has resulted in the imprisonment of Richard Faithfull for money laundering.
Faithfull had previously pleaded guilty to that offense on 16 April 2021 and put forward a basis of plea that sought to minimize his role in the offending.
The FCA did not accept Faithfull’s basis of plea and the matter was listed for a Newton hearing – a trial of fact on a plea before a single judge – to determine the basis upon which he should be sentenced.
Newton Hearings are used where the two sides offer such conflicting evidence that a judge sitting alone tries to ascertain which party is telling the truth.
On Thursday 9 September 2021, Richard Faithfull was sentenced to 5 years and 10 months imprisonment for his crimes and was also disqualified from being a company director for a period of 10 years.
The FCA will now pursue confiscation proceedings against him in order to try and seize his illegal gains.
Judge Tomlinson rejected the submissions made by Richard Faithfull’s legal team and accepted the FCA’s statement of the case.
Richard Faithfull was convicted for laundering £2.5million as part of a transnational organized crime group for more than a year on behalf of 7 professionally run overseas investment frauds.
The sophisticated operation used multiple accounts and front companies in numerous jurisdictions to help the fraudsters continue to defraud victims by paying fictional ‘dividends’ from bank accounts controlled by him.
The operation was designed to look as though the underlying investments were generating returns. He also involved innocent parties to help assist with his criminal enterprise.
The former investment advisor relocated to Ukraine to avoid detection and lived there a life of luxury whilst he continued his criminal activities.
According to the financial watchdog, he spun a web of lies to try and throw the FCA off the case but at the hearing held last week he finally accepted that he was a ‘thoroughly dishonest person’.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said: ‘Mr. Faithfull’s actions showed little compassion for those affected by the underlying criminality instead seeking only to make a profit for himself and others. The FCA remain committed to ensuring that those who choose to break the law are brought to justice. We remind investors to check the FCA’s register are part of their due diligence when looking to make investments.’
The 31-year old former stockbroker was officially Director in four entities registered in London, United Kingdom: InterCapital Holding, Intercapital Projects Management, Intercapital Global, and AMP FX Holdings. All of them were dissolved in 2017.
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