Former Regal Pawnbrokers & Collateral Directors Jailed

Latest update from the FCA;

On 14 July 2023, Peter Currie and Andrew Currie were sentenced to 5.5 years’ and 2.5 years’ imprisonment for fraud and money laundering following prosecution by the Financial Conduct Authority (FCA). 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, a Collateral director, swapped the details of a separate company he had agreed to sell – Regal Pawnbrokers Ltd – for the details of Collateral on the FCA’s public Register. Over the following 18 months, the company was advertised as authorised by the FCA to encourage people to invest in loans on the Collateral platform.  

In January 2018, the FCA notified Peter Currie that they had uncovered the Register change and ordered Collateral to cease unauthorised business. After this, Collateral not only continued to receive investments, but Peter and Andrew Currie also removed approximately £750,000 from Collateral client accounts.  

At around the same time, the Curries appointed an administrator without informing the FCA as they were required to, and transferred £88,000 from Collateral funds. The FCA successfully challenged the appointment of this administrator in court.

LOAN TO VALUE

A new administrator appointed following the FCA’s intervention estimated that of the £17.9 million in customer loans outstanding at the time of Collateral’s collapse, approximately £11 million will not be recovered. This is because of significant shortfalls between the valuations applied to the property used as securities for the loans and the amounts the administrators have been able to realise on the market.        

At the sentencing hearing, both defendants were also disqualified from being company directors.  

In sentencing, His Honour Judge Griffith remarked in respect of Peter Currie that “Collateral was built on foundations of sand and dishonesty as a result of his fraudulent register change.” 

In respect of Andrew Currie Judge Griffith said “the clearest impression of your actions …. was to get more money out to the detriment of investors.”  

Steve Smart, Joint Executive Director of Enforcement & Market Oversight said at the FCA said:  

”Peter Currie fraudulently amended the Register to entice investors in, and together with Andrew, stole client money once they knew the game was up. Unfortunately, the investors will now be left to pick up the tab for the loans that have turned bad.  

“The FCA has begun confiscation proceedings to recover the financial benefit obtained by the defendants, as well as compensation proceedings to recover investor funds. We welcome these significant sentences which show we will take every enforcement action at our disposal to pursue criminals and protect consumers.”