The disturbing case of Terence Freeman

On 12 January Terence Freeman admitted six offences relating to a business, GFX Capital Markets Ltd, a spot foreign exchange trading company.  The company had traded from 2006 to early 2009.  It is suggested that investors with the company may have lost £14 million in total.

Mr Freeman was alleged to have operated a 'Ponzi' fraud - that is a fraud in which early investors' apparently spectacular returns are actually funded from the subsequent investments of other investors.

This is bad news for the reputation of the City of London.

But even more surprising is that Mr Freeman had been bankrupt no less than three times before he set up this business.  He was still an undischarged bankrupt when he set up GFX Capital Markets Ltd and indeed was already subject to a separate director's disqualification order made for 15 years in 1997 (which has not yet expired).  That 1997 order was made when he was imprisoned that year for - you've guessed it - acting as a company director whilst disqualified.

So how was he able to set up a new company and seek investors' money?

Well it seems his previous 'history' was under a different name - Terence Sparks.

But it also appears that concerns about Mr Freeman were voiced to the FSA as early as Autumn 2006.  Some of his 350 victims are now asking the FSA why it did not act sooner to prevent Mr Freeman from losing their money.

Mr Freeman has recently been made subject to a further period of disqualification (to 2025 - by which time he will be in his mid-seventies) and he awaits sentencing for the offences which he has now admitted.  A second period in one of Her Majesty's Prisons awaits him.

But it makes an uninspiring tale of City regulation!

David

www.AccountingEvidence.com

Comments

will they learn ?

The Black Knight | | Permalink

probably not !

it really is that easy.

cymraeg_draig's picture

FSA

cymraeg_draig | | Permalink

Some of his 350 victims are now asking the FSA why it did not act sooner to prevent Mr Freeman from losing their money.

 

The FSA are a waste of time.  I've had dealings with them and I wouldnt waste a postage stamp on them again. 

davidwinch's picture

Sentence

davidwinch | | Permalink

On 14 February Mr Freeman was sentenced at Southwark Crown Court to 8 years imprisonment.

David

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