FCA wins convictions as social media stars fined in trading scheme

Court sentences seven over promotion of an unauthorised forex trading scheme

Seven social media influencers have been sentenced at Southwark Crown Court after pleading guilty to issuing unauthorised financial promotions linked to a foreign exchange trading scheme.

Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin and Eva Zapico each admitted one count of communicating unauthorised financial promotions, contrary to the Financial Services and Markets Act 2000.

The prosecutions were brought by the Financial Conduct Authority (FCA).

The court imposed the following penalties:

• Lauren Goodger was fined £3,750 and ordered to pay costs of £5,778.18.
  
• Biggs Chris was fined £600 and ordered to pay £1,000 in costs.
  
• Jamie Clayton was fined £820 and ordered to pay £1,000 in costs.
  
• Rebecca Gormley received a conditional discharge and was ordered to pay costs of £2,866.42.
  
• Yazmin Oukhellou was fined £974 and ordered to pay £1,000 in costs.
  
• Scott Timlin was fined £938 and ordered to pay £1,000 in costs.
  
• Eva Zapico received an absolute discharge and was ordered to pay costs of £1,770.44.
  

According to the FCA, the combined following of the individuals’ Instagram accounts totalled approximately 4.5 million users.

Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, said the influencers had “betrayed the trust of those who followed them” and confirmed that the regulator would continue to pursue those who put the financial well-being of consumers at risk.

Breaching the general prohibition under sections 19 and 23 of the Financial Services and Markets Act 2000 is a criminal offence punishable by a fine and/or up to two years’ imprisonment. Communicating unauthorised financial promotions under sections 21 and 25 of the Act carries the same maximum penalty.

The case related to the promotion of a foreign exchange trading scheme involving Contracts for Difference (CFDs), which are high-risk derivative products. The FCA has previously stated that 80% of customers lose money when investing in CFDs due to their high-risk and leveraged nature. In the UK, restrictions apply to the marketing and sale of CFDs and similar products to retail investors.

The FCA has also published finalised guidance clarifying its expectations when firms and influencers use social media to communicate financial promotions, in response to concerns about emerging consumer harm.

Reporting restrictions are in place. Further details are available from the FCA press office.