Firm denies running ‘unlawful’ investment scheme

Link: FSA to name and shame rule-breakers

The Financial Services Authority – which last year took over the regulation of many accounting firms that conduct investment business – brought the action against Dobb White & Co and Morris White & Co following an investigation by the regulator into what it alleges is an $18m (£12m)’unlawful’ investment scheme.

Assets of two partners, Shinder Singh Gangar and Alan White have also been frozen.

A statement issued by Dobb White & Co confirmed the FSA investigation was in connection with an investment scheme, but said: ‘Dobb White & Co deny any allegation of wrong doing.

‘Its partners will be defending themselves vigorously and in particular deny the specific allegation of being party to carrying on an unlawful investment scheme.’

The firm also states its accountancy business is unaffected by the FSA action.

Meanwhile the FSA issued a statement of its own.

Carol Sergeant, managing director of the FSA, said: ‘We are not concerned with whatever accounting services these firms may provide.

‘However, our evidence suggests that Dobb White & Co, Morris White & Co, Mr Gangar and Mr White have not confined themselves to accountancy, but have been running what appears to be an unlawful investment scheme that has probably taken substantially in excess of $18m from the public.

‘By taking court action to stop their activities and freeze their assets, the FSA, working with the SFO and the police, has acted to protect the public while further investigations into their alleged activities continue.’

Interim injunctions in the High Court were granted to the UK watchdog on 29 October against the two firms and partners.

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