The Financial Conduct Authority has launched High Court proceedings against an unauthorised investment firm and its sole director, Mr Daniel Willis, over £2.8m owed to investors.
The regulator says it will try to recover money for victims of the firm’s “unlawful activity.”
The FCA alleges Argento Wealth Ltd (AWL):
- unlawfully took approximately £2.8m as deposits under loan agreements and/or as part of an unauthorised collective investment scheme
- unlawfully arranged investments in EMB Fund Limited (EMB) totalling about US$9 million (£7.5m) and
- breached restrictions on financial promotion.
The FCA accuses Mr Willis of being knowingly concerned in the unlawful activity.
Mr Willis has been involved in the financial world for some years and was named Wealth Management Finance Executive of the Year by the Acquisition International magazine and website in 2020.
The FCA said that it considers that AWL and Mr Willis have failed to produce credible evidence that AWL can repay the funds borrowed from both retail investors and EMB (plus the interest due), and AWL is “therefore insolvent.”
The FCA has obtained undertakings equivalent to interim orders freezing AWL’s/Mr Willis’ remaining assets. The watchdog said the action has been taken with with the aim of protecting investors pending seeking final orders compensating approximately 13 lenders who lent money to AWL and many others “harmed by AWL’s unlawful investment promotion.”
Despite these efforts the FCA warned that investors who lent money to AWL are likely to suffer “very significant losses.” Exact figures cannot be given at present, but AWL’s remaining assets appear to be far below what would be required to return all investors’ money. It’s believed that total losses could be as high as £13.5m.
No date has yet been set for the High Court trial concerning the restitution order.
The FCA says it is seeking to resolve matters as quickly as possible but the legal proceedings will take time. The FCA says that anyone who invested money with or through AWL should seek independent legal advice.
