The UK’s Financial Conduct Authority (FCA) has brought criminal proceedings against Lee Steven Maggs of Sittingbourne, Kent, for two counts of fraud and one count of breaching the Financial Services and Markets Act 2000 (FSMA).
The three counts are as follows:
- Carrying on a regulated activity (namely investment management) whilst not authorised, contrary to section 19 and section 23 of the Financial Services and Markets Act 2000.
- Fraud by abuse of position, contrary to section 1 and section 4 of the Fraud Act 2006.
- Fraud by misrepresentation, contrary to section 1 and section 2 of the Fraud Act 2006.
Mr Maggs allegedly ran an unauthorized investment scheme called ‘Kube Trading’ which received around £2.67m from investors between 1 March 2019 and 22 January 2021.
The FCA alleges that the scheme involved trading contracts for differences in foreign exchange (FX), which is a regulated activity, and that Mr Maggs concealed significant losses from investors.
He is also alleged to have defrauded investors by misrepresenting how the system works and the handling of investment funds.
Mr Maggs appeared at Maidstone Magistrates’ Court on 23 April 2024. The case was sent to Maidstone Crown Court for a plea and trial preparation hearing on 21 May 2024.
Offenses under section 1 of the Fraud Act 2006 carry a maximum sentence of 10 years in prison.