In a case brought by the Financial Conduct Authority (FCA), Peter Currie (59) and Andrew Currie (57) were found guilty of fraud and money laundering charges at Southwark Crown Court today.
The conviction follows a five-week trial in which Peter Currie was convicted of two counts of fraud and one of money laundering, and Andrew Currie of one count of each. Andrew Currie was, however, acquitted of a single count of fraud.
The brothers were directors of Collateral, a company that falsely claimed to be FCA authorised and regulated while offering peer-to-peer style investments.
Peter Currie, who served as a director at Collateral, swapped the details of a separate company he had agreed to sell, Regal Pawnbrokers Ltd, for the details of Collateral on the FCA register in December 2015.
For the next 18 months, the company misled potential investors by advertising itself as authorised to encourage them to invest in loans on the Collateral platform.
In January 2018, the FCA discovered the unauthorised register change and instructed Peter Currie to cease the unauthorised business activities of Collateral.
Despite the FCA’s directive, Collateral continued to accept investments, and the Curries were found guilty of removing approximately £750,000 from Collateral client accounts.
Additionally, they appointed an administrator and transferred an extra £88,000 from Collateral funds without informing the FCA, as mandated by law.
The FCA stated that the Curries’ fraudulent activity undermined the integrity of the FCA Register, which is critical for consumer protection.
Their manipulation of the official record to deceive consumers was unequivocally considered criminal conduct by the jury.
The FCA has since taken measures to bolster the Register, improving controls and making it more user-friendly, with additional information made available to consumers.
Peter and Andrew Currie are scheduled for sentencing on 7th July 2023.
