The UK Financial Conduct Authority (FCA) has formally charged Bruce Rowan, David Simmons, Robert Sweeney, and Justin Russell with multiple counts of conspiracy to commit fraud by false representation following allegations of orchestrating an unauthorized investment scheme that resulted in significant financial losses for investors, totaling approximately £3.9 million. Additionally, Sweeney and Simmons face charges of money laundering in relation to the proceeds of the alleged scam.
The Allegations
According to the FCA, the scheme operated between 1 May 2015 and 23 July 2019, involving Hanover Merchant Capital UK Ltd and Liberty House Capital Ltd. The defendants are accused of deceiving UK investors by falsely claiming their investments would support water extraction and bottled water production projects and providing misleading information about the potential returns on these investments.
The individuals implicated in this case are scheduled to make their initial appearance before Westminster Magistrates’ Court on 3 April 2024, where they will respond to the charges laid against them.
The prosecution outlines several specific misleading representations made to investors, including assertions that Hanover Merchant Capital UK Limited and Liberty House Capital Ltd would be established investment entities with permanent offices in London and part of a larger international development group. The defendants are also accused of falsely stating that investor funds would be allocated towards legitimate water extraction and bottled water production ventures, that these investments were secured by valid insurance, and that investors would receive regular annuities and returns generated from their capital contributions.
Legal Framework and Potential Penalties
The charges of conspiracy to commit fraud by false representation are brought under section 2 of the Fraud Act 2006 and section 1(1) of the Criminal Law Act 1977. Conviction on these counts could result in penalties, including fines and imprisonment for up to 10 years. Additionally, the money laundering charges, filed under section 327 of the Proceeds of Crime Act 2002, carry potential sentences of fines and/or imprisonment for up to 14 years upon conviction.
This case underscores the FCA’s commitment to safeguarding investors from fraudulent schemes and highlights the legal risks faced by individuals who engage in deceptive financial practices.
