The Financial Conduct Authority has won a court order to obtain £1.6 million from Argento Wealth Ltd (AWL) and its sole director Mr Daniel Willis who is accused of promoting two alleged unlawful investment schemes. 

The FCA has previously commenced civil proceedings against AWL, a firm which was never authorised by the FCA, and Mr Willis to recover investor funds.

The recovery is related to the firm’s alleged unlawful activity in connection with an Unauthorised Collective Investment Scheme (UCIS).

The watchdog secured court undertakings which froze AWL’s and Mr Willis’ assets.  

The High Court has approved a consent order, with the intention that the money is returned to investors in the schemes.

While £1.6m has been won by the FCA order it is believed that AWL took £2.8bn in deposits from investors and total losses have earlier been estimated as up to £13.5m.  

The FCA alleged that AWL unlawfully: 

• took approximately £2.8m as deposits under loan agreements and/or as part of an unauthorised collective investment scheme  
• arranged investments in EMB Fund Limited (EMB) totalling about US$9 million (£7.1M) which breached the restrictions on financial promotion 

The FCA alleges that Mr Wills was “knowingly concerned” in the unlawful activity. 

The FCA says that AWL and Mr Willis have not admitted any of the FCA’s allegations that led to the proceedings, which began on 1 June 2022, but have agreed to pay money to the FCA intended for the eventual distribution to investors.  

Further court hearings are expected to decide how, and to whom, the funds secured should be distributed. This process may take a significant amount of time, the FCA warned.  

The settlement agreed by the FCA was intended to prevent all of AWL/Mr Willis’ remaining assets from being used up to meet legal and living costs. Without the settlement, there would have been a significant risk of the remaining investor money being used to fund legal fees, leaving nothing for investors, the FCA said.

The FCA added that despite the settlement, investors will still suffer “very significant losses.” 

The FCA said that AWL is not, and never has been, an FCA authorised firm.

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 previously 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."