The Financial Conduct Authority (FCA) v Anderson & Ors

The Financial Conduct Authority (FCA) v Anderson & Ors

Distribution should be made to depositors who suffered actual capital losses, based on FCA schedules, with sums allocated per Defendant's scheme and scaled pro rata; pooling is not justified given the structure and guarantees of each scheme.

Parties
Claimant: The Financial Conduct Authority; Defendant: John Cecil Anderson; Defendant: Kenneth Alan Peacock; Defendant: Kautilya Nandan Pruthi; Interested Party: Peter Lloyd
Jurisdiction
England and Wales
Judgment Date
05 November 2014
Procedural Posture
Application / Post Judgment Directions
Outcome
Directions granted for distribution of sums to depositors as per FCA schedules, allocated per scheme and scaled pro rata; liberty to apply for unresolved issues.
Legal Topics
Distribution of Funds, Ponzi Schemes, Restitution, Bankruptcy, Compensation for Losses
Financial Regulation Insolvency Distribution of Funds Ponzi Schemes Restitution Bankruptcy Compensation for Losses

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Parties

The Financial Conduct Authority

Claimant

John Cecil Anderson

Defendant

Kenneth Alan Peacock

Defendant

Kautilya Nandan Pruthi

Defendant

Peter Lloyd

Interested Party

Procedural Posture

Application / Post Judgment Directions

Legal Issues

  1. 1 Basis for court directions under section 382 of the Financial Services and Markets Act 2000 for distribution of sums to depositors in Ponzi schemes
  2. 2 Identification of qualifying persons for compensation
  3. 3 Fairness of distribution method

Ratio Decidendi

Distribution should be made to depositors who suffered actual capital losses, based on FCA schedules, with sums allocated per Defendant's scheme and scaled pro rata; pooling is not justified given the structure and guarantees of each scheme.

Court Disposition

Directions granted for distribution of sums to depositors as per FCA schedules, allocated per scheme and scaled pro rata; liberty to apply for unresolved issues.

Orders

  • Distribution to qualifying depositors per FCA schedules, allocated per Defendant's scheme and scaled pro rata
  • General liberty to apply for unresolved calculation errors or changed circumstances