The prison trial of former Collateral administrators Andrew Currie and Peter Currie began right this moment, greater than a yr after proceedings have been commenced by the Metropolis watchdog.
The 2 brothers, who headed up the collapsed peer-to-peer lending platform, every face one cost of fraud by false illustration, one cost of fraud by abuse of place and one cost of changing prison property.
It’s alleged that the Curries falsely instructed traders that Collateral was authorised by the Monetary Conduct Authority (FCA).
The Curries “lied to traders who invested via the corporate by telling them Collateral was authorised and controlled to be able to persuade them to speculate, and to ensure that the Curries to earn money,” Stuart Biggs, counsel for the Metropolis watchdog, instructed jurors at first of the trial at Southwark Crown Courtroom, in line with a report in Law360.
The Curries have pled not responsible.
The brothers plan to say that they have been suggested they didn’t want the authorisation, in line with the report, however Biggs famous that it was a requirement as a “matter of legislation”, in line with the Law360 report.
Collateral collapsed into administration in February 2018, with questions already circling about its regulatory standing.
As Peer2Peer Finance Information reported that month, the three restricted corporations listed on the Monetary Companies Register that had traded below the identify of Collateral had not had regulatory permission to function as a shopper credit score enterprise for at the least 11 months prior and had all been dissolved.
Moreover, Collateral (UK) Restricted, which was cited on the platform’s common mortgage updates to traders, couldn’t be discovered on the Monetary Companies Register in any respect.
The FCA has additionally alleged that the brothers dishonestly abused their positions by transferring funds to a separate firm. They’re additionally believed to have transferred additional sums that they knew or suspected have been the proceeds of crime into the financial institution accounts of Andrew Currie.
Learn extra: Collateral injury: A timeline of the administration
When contacted by Peer2Peer Finance Information when the allegation surfaced final yr, Andrew Currie declined to touch upon the allegations.
Collateral beforehand supplied pawnbroking-style loans in opposition to gadgets corresponding to jewelry and vehicles however shifted in direction of land and property in 2017.
Round 1,000 traders had put greater than £15m via Collateral earlier than it fell into administration, the FCA claims.