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- author, Kevin Peachey
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A social media influencer with a total of 4.5 million followers on Instagram has been charged in connection with promoting unauthorized investments.
The city’s watchdog, the Financial Conduct Authority (FCA), has charged them with allegedly being paid to promote the scheme.
Those accused include Lauren Goodger of reality show The Only Way is Essex fame and Love Island star Biggs Chris.
The FCA has previously threatened to crack down on so-called “finfluencers” if their posts are deemed misleading.
criminal liability
This is the first prosecution brought by the FCA against an influencer for alleged financial promotion offences.
The FCA alleged that Emmanuel Nwanze, 30, and Holly Thompson, 33, operated an Instagram account using the handle @holly_fxtrends. The watchdog advised on buying and selling investments called contracts for difference, but said it did not have the necessary regulatory permissions to do so.
The FCA said contracts for difference (CFDs) were high-risk investments that bet on the price of an asset, in this case a foreign currency.
80% of clients lose money when investing in CFDs due to risk.
Mr Nwanze is alleged to have operated a foreign exchange trading scheme and engaged in unauthorized financial promotions.
The watchdog group claims it paid social media influencers to promote @holly_fxtrends to their Instagram followers.
Love Island’s Jamie Clayton, Rebecca Gormley and Eva Zapico, Towie’s Yazmin Okerlou and Geordie Shore’s Scott Timlin were also among those charged.
Mr. Nwanze, Mr. Thompson, and the influencers they funded are charged with fraudulent communications for financial promotion.
Mr Nwanze also faces one charge of breaching a so-called general prohibition under the Financial Services and Markets Act 2000. The Act prohibits people from carrying out regulated activities in the UK unless they are authorized to do so.
If convicted, he could be sentenced to up to two years in prison.
They are due to appear at Westminster Magistrates’ Court on June 13.
