The Court of Appeal today has upheld an appeal brought by Ms Karen Ferreira in a case in which she had been ordered by the High Court, on 6 May 2020, to pay restitution for consumers who suffered losses relating to an illegal financial promotion by Our Price Records.
Our Price Records was a start-up company promoting other companies’ products through its website for a commission. After initially failing to secure any investment from high-net-worth or sophisticated investors through an FCA authorised firm, Our Price Records sought to raise funds from retail customers through two share offerings. Our Price Records promoted them through unauthorised marketing agents who telephoned members of the public.
During our investigation, Our Price Records was placed into administration. The FCA successfully took action against four individuals, including Ms Ferreira, obtaining restitution orders against them. Ms Ferreira appealed the decision, arguing she was not ‘knowingly concerned’ in Our Price Records’ contravention of rules that required Our Price Records’ financial promotion to be approved by an FCA authorised person. The Court of Appeal agreed with her, holding that her belief that the financial promotion had been approved by a firm of chartered accountants meant she did not have the knowledge required to have been involved in Our Price Records’ breach.
As a result of the judgment, Ms Ferreira no longer has to pay restitution in this matter. The findings against the remaining three individuals, Mr Lee Skinner, Mr Tyrone Miller and Mr Clive Mongelard, are not affected by this ruling. Since the original decision by the High Court, they have all been made bankrupt. The Official Receiver has investigated their financial affairs. It is unlikely any monies will be recovered from these individuals.
You can read more details on the case we took in our press release[1].
Read the Court of Appeal’s decision[2].