24HR Trading Academy has been using WhatsApp to target clients without FCA authorisation.
The FCA have this week (27th April) launched High Court proceedings against 24HR Trading Academy Ltd and its sole director Mohammed Fuaath Haja Maideen Maricar. It is alleged that the firm have been advising on investments via social media without the FCA’s authorisation.
Clients of 24HTA were allegedly advised to sign up with a “partnered” broker to place their trades. Sign ups and other commissions from the brokerages were received directly by 24HTA, in addition to the monthly payments from clients for the “trading signals” which were sent, the FCA claim.
The FCA have secured an interim injunction to stop all activities from continuing and frozen Maricar’s assets, worth up to £624,311.
Who are 24HR Trading Academy?
According to their website 24HR Trading Academy was created in 2016 by Mohammad Fuaath Haja Maideen Maricar, who is based in London. The service offers training in relation to trading. It states:
24hrTradingAcademy.com helps normal people master the fundamentals of psychology to be able to find that UNIQUE trading style instilled inside them.
The course is designed to help those who are serious regardless of their situation to build a strong and steady mindset to have that similar to Fuaadh to be able to not only bring consistency in their trading but also other aspects of life.
The adviser ran into trouble in September 2019 after coming on the radar of the FCA. They stated that:
This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.
Why have the FCA taken 24HR Trading Academy to court?
Now, the FCA have launched court proceedings against the adviser. The FCA are claiming that, from 2017, 24HTA and/or Maricar have advised on investments, arranged deals in investments, and engaged in financial promotion without FCA authorisation.
The City watchdog is seeking final orders from the High Court to prevent Maricar from carrying out unauthorised advice in the future, as well as a restitution order which would distribute the currently frozen assets to clients who have suffered financial losses as a result of the alleged breaches of the Financial Services and Markets Act.
Mr Maricar had been transmitting “trading signals” and making other investment recommendations to clients via WhatsApp and other social media channels. Clients were advised that if they followed these trading instructions they would make significant profits.
The regulator has alleged that Maricar “has been knowingly concerned in 24HRTA’s contraventions”.
How can Smooth Commercial help you if you have been affected?
At Smooth Commercial Law, our team of experts have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. Unfortunately, with unregulated investment schemes like 24HR Trading Academy, you are not always protected by the Financial Services Compensation Scheme.
However, we often see regulated advisers and introducers advise clients to transfer their money into unregulated investments. In this scenario, you may have a case for compensation.
Should you have a claim we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.