A London man who cheated investors out of more than 5 million pounds ($7.6 million) in a fraudulent currency-trading scheme, spending the money at casinos and nightclubs, was found guilty of fraud by a London jury today.
Alex Hope took more than 5 million pounds from investors
between March 2011 and April 2012, and spent 2 million pounds
himself, including 950,000 pounds at casinos, prosecutors said.
Hope had already pleaded guilty to operating a collective
investment scheme without authorization, the Financial Conduct
Authority said in a statement.
The 25-year-old “promised fantastic returns but, as is so
often the case with unauthorized investment schemes, those who
invested ended up with significant losses and the main
beneficiary of the scheme was Hope himself,” Georgina
Philippou, the FCA’s acting director of enforcement and market
oversight, said in the statement.
The conviction is another black eye for the foreign-exchange trading industry, which has already been roiled by
global investigations into the manipulations of key benchmarks.
Before the trial, Raj Von Badlo pleaded guilty to
recklessly making false representations to investors and
promoting a collective investment scheme without authorization.
Both men will be sentenced Jan. 16 at London’s Southwark