Curries convicted in Collateral fraud case
Former Collateral directors Peter and Andrew Currie have been convicted of fraud following a five-week trial.
The brothers, who headed up the collapsed peer-to-peer lending platform, each faced one charge of fraud by false representation, one charge of fraud by abuse of position and one charge of converting criminal property at Southwark Crown Court.
It is alleged that the Curries falsely told investors that Collateral was authorised by the Financial Conduct Authority (FCA).
Peter, 59, was convicted by unanimous verdicts of two counts of fraud and one of money laundering and Andrew, 57, was convicted of one count of fraud and one of money laundering at Southwark Crown Court.
Andrew was acquitted of one count of fraud.
Read more: Collateral trial – investors say apparent FCA approval drove decision
Before its collapse into administration in February 2018, Collateral offered peer-to-peer style investments on a website fraudulently claiming it was authorised and regulated by the FCA.
In December 2015 Peter Currie swapped the details of a separate company he had agreed to sell – Regal Pawnbrokers – for the details of Collateral on the FCA register, the court heard.
Over the following 18 months, the company was advertised as authorised to persuade people to invest in loans on the Collateral platform.
In January 2018 the FCA notified Peter Currie that it had uncovered the register change and ordered that Collateral cease unauthorised business.
Read more: Collateral damage: A timeline of the administration
After this, Collateral not only continued to receive investments but Peter and Andrew Currie also removed approximately £750,000 from the Collateral client accounts.
At around the same time the Curries appointed, without informing the FCA as required, an administrator and transferred a further £88,000 from Collateral funds.
The FCA said in a statement following the trial: “The integrity of the FCA Register is vital to consumer protection.
“The Curries masqueraded as an authorised firm to defraud consumers by falsifying the official record and the jury has quite rightly concluded their conduct was criminal.
“The FCA has invested heavily in the Register to strengthen controls and make it easier for people to use, with more information available to consumers.”
Both will be sentenced on July 7 2023.