Money Laundering Is Fraud With Serious Consequences As Richard Faithfull Discovered
According to the Financial Conduct Authority (“FCA”) on Thursday 9 September 2021, Richard Faithfull gets over 5 years in prison for laundering money, contrary to Section 327 Proceeds of Crime Act 2002. He was also disqualified from being a company director for a period of 10 years.
Faithfull had previously pleaded guilty to that offence on 16 April 2021 and the FCA say that he put forward a basis of plea that sought to minimise his role in the offending.
Following a 4-day hearing the judge, His Honour Judge Tomlinson, it seems rejected the arguments made by Richard Faithfull’s legal team and accepted the FCA’s statement of the case.
Richard Faithfull laundered £2.5million as part of a transnational organised crime group for longer than 12 months, laundering the proceeds of, at least, 7 professionally run overseas investment frauds.
The operation was apparently according to the FCA sophisticated, utilising multiple accounts and front companies in numerous jurisdictions. Faithfull was formerly an investment advisor and therefore seems to have ascertained knowledge to progress the fraud, inter alia by paying fictional ‘dividends’ from bank accounts controlled by him to make it look as though the underlying investments were generating returns. It is said by the FCA that he also involved innocent parties to help assist with his criminal enterprise.
To avoid detection he relocated to Ukraine where he “lived a life of luxury” the FCA reported, whilst he continued his criminal activities, enlisting the assistance of local criminal groups abroad. Following his arrest, at the hearing held last week, the FCA said that he finally accepted that he was a ‘thoroughly dishonest person’.
The sentencing judge remarked that it was ‘serious offending’ which was linked to the:
human misery caused by boiler room fraud’ and that ‘money coming in [to accounts controlled by Faithfull] was not being invested, it was simply being slaughtered
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:
Mr Faithfull’s actions showed little compassion for those affected by the underlying criminality instead seeking only to make a profit for himself and others. The FCA remain committed to ensuring that those who choose to break the law are brought to justice. We remind investors to check the FCA’s register are part of their due diligence when looking to make investments.
The FCA says that it will now pursue confiscation proceedings against him in order to try and seize his illegal gains.
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This page contains information obtained from the Financial Conduct Authority’s new article Richard Faithfull sentenced to over 5 years imprisonment for money laundering. © The Financial Conduct Authority).
Originally published at https://www.oliverelliot.co.uk on September 12, 2021.