The FCA has secured more than £100,000 to repay consumer victims of Mohammed Maricar, who set up a forex ‘trading academy’ that used WhatsApp to provide unauthorised investment advice.

His 24HR Trading Academy subjected consumers to illegal contracts for difference (CFDs).

He sent trading signals via WhatsApp which contained recommendations about CFDs relating to currencies and commodities.

The FCA commenced proceedings in the High Court against 24HR Trading and Mr Maricar in April 2020.

The High Court found that the 'signal' or trading tips amounted to unlawful investment advice in contravention of the Financial Services and Markets Act 2000.

The Court also found that Mr Maricar was knowingly concerned in his company’s contraventions of the act.

24HR Trading also encouraged consumers to open trading accounts with 'partnered brokers' to place their CFD trades.

Mr Maricar received significant sign-up and other commissions from these brokers. This conduct was found to constitute both financial promotion and making arrangements with a view to consumers acquiring investments.

In March 2021, the High Court ordered that Mr Maricar and his company pay £530,000 by way of restitution and compensation to investors.

Mr Maricar failed to make any payment in relation to the High Court’s restitution order.

On 30 June 2021, the Court of Appeal refused Mr Maricar’s application for permission to appeal.

On 14 June 2021, the FCA filed a bankruptcy petition, seeking a bankruptcy order against Mr Maricar. He did not oppose the FCA’s petition.

On 3 August 2021, The High Court made a bankruptcy order against Mr Maricar and an official receiver was appointed over his estate.

The FCA has received a payment from the official receiver totalling £106,650.58 and is now applying to the High Court for a distribution order.

Consumers that may have been impacted and are known about by the FCA will be contacted directly by the FCA, but all impacted consumers can also contact the FCA about the proposed distribution order.

In 2021 Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Neither 24HR Trading nor Mr Maricar were permitted to give investment advice which, in this case, included sending trading signals via social media and their conduct risked substantial losses for customers.

“We urge consumers to make sure they are dealing with FCA authorised firms when seeking investment advice, including offers to provide tips or signals via social media apps, and to stay clear of unauthorised operators like 24HR Trading and Mr Maricar.”