The Financial Conduct Authority (FCA) has handed down a prohibition order on a former financial adviser who was convicted of defrauding his clients.
Paul Grant has been banned for life from performing any regulated activity, the watchdog confirmed to International Adviser.
It came into effect on 12 February 2020, as Grant did not make an appeal to the upper tribunal within the allowed 28-day window.
Targeting of the vulnerable
Between 2003 and 2016, Grant persuaded his customers, some of whom were vulnerable individuals, to trust him to invest their money.
But instead, he transferred the pots into his personal accounts.
Grant then paid small sums back to his victims so they would believe their investments were profitable.
He pleaded guilty to 11 counts of fraud by abuse of position and three counts of theft in October 2018, after stealing £2.1m ($2.7m, €2.5m) from his clients.
“[Grant] committed fraud, while occupying a position, that of a financial adviser, in which you were expected to safeguard, or not to act against the financial interest of your various clients,” said judge Falhive, while sentencing him to five years and six months imprisonment in January 2019.
“You have dishonestly abused your position, intending to make a gain for yourself […] you abused the trust of many, many who though they were friends of yours […] after significant planning and over a significant number of years, with a large number of victims, you have deliberately targeted them so that they could be deprived of their money.
“This deliberate targeting of people, some of whom are vulnerable, and it strikes me in hearing the way in which you were acting that some of those were deliberately targeted because of their vulnerability,” he added.
FCA-regulated firms
According to the UK watchdog’s register, Grant held similar positions across three different firms between 2003 and 2016; including investment adviser, pension transfer specialist and director.
All companies were FCA-regulated during his tenure.
Two of the businesses, Master Adviser and Sesame Select Services, are currently authorised by the regulator; but the third, called Sesame, lost its regulated status in 2010, the watchdog’s register shows.
