The Financial Conduct Authority v Golding & Ors [2021] EWHC 372 (Ch) (22 February 2021)

The Financial Conduct Authority v Golding & Ors [2021] EWHC 372 (Ch) (22 February 2021)

Separate distributions are ordered for DWS and OEL schemes because they are distinct, separable, and not hopelessly intertwined; losses are to be calculated as capital invested minus returns received, excluding expectation losses and non-qualifying investors; third-party aggregator arrangements are excluded from distribution.

Citation
[2021] EWHC 372 (Ch)
Parties
Claimant: The Financial Conduct Authority; Defendant: Samuel Anthony Golding; Defendant: Shantelle Deacon (also known as Shantelle Golding); Defendant: Digital Wealth Limited; Defendant: Outsourcing Express Limited
Jurisdiction
England and Wales
Judgment Date
22 February 2021
Procedural Posture
Civil Restitution Application / Post Settlement Distribution Directions
Outcome
Directions granted for separate distributions to qualifying investors in DWS and OEL schemes.
Legal Topics
Restitution Orders, Collective Investment Schemes, Unregulated Investment Schemes, Ponzi Schemes, Distribution of Recovered Funds
Financial Regulation Civil Procedure Restitution Orders Collective Investment Schemes Unregulated Investment Schemes Ponzi Schemes Distribution of Recovered Funds

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Parties

The Financial Conduct Authority

Claimant

Samuel Anthony Golding

Defendant

Shantelle Deacon (also known as Shantelle Golding)

Defendant

Digital Wealth Limited

Defendant

Outsourcing Express Limited

Defendant

Procedural Posture

Civil Restitution Application / Post Settlement Distribution Directions

Legal Issues

  1. 1 Should distribution of recovered funds be made separately for each scheme or pooled?
  2. 2 What is the correct approach to calculating investor loss for distribution?
  3. 3 How should specific categories of investors (aggregators, non-responding investors, switchers) be treated?

Ratio Decidendi

Separate distributions are ordered for DWS and OEL schemes because they are distinct, separable, and not hopelessly intertwined; losses are to be calculated as capital invested minus returns received, excluding expectation losses and non-qualifying investors; third-party aggregator arrangements are excluded from distribution.

Court Disposition

Directions granted for separate distributions to qualifying investors in DWS and OEL schemes.

Orders

  • FCA to distribute £953,195.75 to DWS scheme investors and £2,489,550.47 to OEL scheme investors by cheque by 30 April 2021.
  • FCA to retain sufficient funds for recently identified investors; unclaimed or further recovered funds to be distributed via special distributions or random lottery for amounts under £50.