Case details for GERALD CHIATOH ETANGAYONG

Name: GERALD CHIATOH ETANGAYONG

Name: GEC CONSULTANCY LIMITED

Date of Birth: 24 / 12 / 1987

Date Order Starts: 29 / 10 / 2018

Disqualification Length: 11 Years 0 Month(s)

CRO Number: 09128919

Last Known Address: 2 LAMBOURNE PLACE, , , , LONDON, SE3 7BH

Conduct: 8. From at least 01 September 2014 to 27 October 2015, Mr Etangayong: 8.1. Caused or allowed GEC to carry on a regulated activity by arranging and/or managing deals in investments without authorisation or exemption in breach of Section 19 of the Financial Services and Markets Act 2000 (“FSMA”) in that: 8.1.1. Section 19 of the FSMA prohibits the carrying on of specified activities, including managing investments; dealing in investments as either principal or agent and arranging deals in investments; in relation to specified investments, which includes equity in a company, an interest in a fund, or specific derivatives contracts with foreign exchange as their underlying investment; without authorisation. 8.1.2. GEC was neither authorised nor exempt from the provisions of s19 FSMA. As a result the individuals for whom investments were arranged and/or managed were not protected under the UK Financial Services Compensation Scheme; 8.1.3. The investment contracts were concluded between the investors and an offshore company ("Company A"). GEC’s bank account was recorded on four of the contracts recovered from investors; 8.1.4. Further to those contracts, and between 16 October 2014 and 19 August 2015, at least 8 investors paid £134,278 directly into GEC's bank account. GEC also managed/made payments to further investors who had made investments of £60,500; 8.1.5. From those funds: 8.1.5.1. £38,000 was transferred to an investment platform held in the name of GEC; and 8.1.5.2. £58,200 was transferred to an investment platform held in the name of Company A; 8.1.6. The sums transferred to the investment platform for GEC were invested in a number of foreign currencies during the period 19 November 2014 to 14 October 2015; 8.1.7. Funds held on the trading platform peaked at £118,211, from which withdrawals were made as follows: 8.1.7.1. 67,421 withdrawn from GEC’s investment platform 8.1.7.2. 50,790 withdrawn from Company A’s investment platform 8.1.8. Between 30 March 2015 and 27 October 2015 GEC withdrew £66,796 (after fees) from its investment platform; 8.1.9. Of the total payments from GEC’s bank account, £34,887 was paid to the 8 investors detailed above and £22,400 appears to have been paid to other investors; 8.1.10. Investors have claimed £200,185 in GEC’s liquidation, of which £129,335 is owed to those 8 investors detailed above. 8.2. Caused or allowed GEC to accept deposits from investors and pay these funds to an investment platform at a time when he knew or ought to have known that the contractual documentation and promotional material issued to those investors and the other representations made to those investors were false or misleading in the following respects: 8.2.1. Investors were informed their funds would be ‘safe and secure at all times’, with some client contracts showing client funds would be held in a ‘segregated account’. However there is no evidence that investors’ funds were held in a separate account by GEC; 8.2.2. Investors contracts stated that their funds would be classed as "…privy investment meaning they are safe and secure at all times and will not fall under the general creditor list of Investors…" when they were not; 8.2.3. Investors were also informed they would receive a reimbursement of ‘all the capital invested’ at the end of investment period. However the product disclosure (“PDS”) statement for the FX trading platform on which Company A and GEC traded describes the key risks of the product including the risk of ‘potentially large losses’. The PDS further warns that the foreign exchange currency market is ‘highly volatile’, ‘very difficult to predict’ and that it should not be considered a safe trade. Therefore there was a significant risk that the investment would be unable to meet the fixed returns and a reimbursement of all capital to the investors; 8.3. Failed to ensure that GEC invested all funds advanced by Company A’s clients and applied these monies to the benefit of current clients in that: 8.3.1. Internal records provided by GEC show Company A’s clients contracted to invest funds totalling at least £163,500. GEC’s bank statements record £134,278 received from the client investors. One further client invested £25,000 although his funds were paid directly into a bank account belonging to him. However of these sums, only £96,200 was invested in the only FX trading platform shown as in use by GEC; 8.3.2. Following investments returns, FX platform records show £118,211 available for withdrawal from the FX trading platform. Of these GEC paid £32,988 to accounts in Germany which he states were used to settle earlier outstanding liabilities not of GEC. He states a further £13,350 was transferred to close friends who had previously loaned monies and a further £17,802 was transferred directly to him. 8.3.3. The remaining £67,420 was transferred to GEC’s bank account from which payments totalling only £34,887 were made to Company A’s known investors who had invested £134,278 via GEC’s bank account. A further £22,400 was also paid to investors whose investments had not been paid into GEC’s bank account. As a consequence of the foregoing, at least £200,185 remains outstanding to Company A’s investors. 

This information is correct as at 22 / 10 / 2018



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