Answering an application by the UK's Financial Conduct Authority, the English High Court has made orders against people who helped to carry out an unauthorised foreign exchange investment scheme run from Cyprus.

The scheme, which turned out to be fraudulent, took in at least £1.2 million from 65 investors but none of the investors’ money was ever used in foreign exchange trading or in any other type of investment.

Judge Pymont declared that Noerus Investments Ltd (an unauthorised company based in Cyprus) and other persons carrying on business under the name of Noerus Capital unlawfully promoted, and purported to operate, a managed foreign exchange trading facility between December 2014 and November 2015, in contravention of the Financial Services and Markets Act 2000.

The court also issued injunctions to restrain further skulduggery and made a restitution order under which the Noerus defendants must pay £1,230,298.41 to cover the losses that the investors suffered. The FCA has not yet identified enough assets to cover every loss, so it expects a shortfall. To help distribute funds, the court approved a scheme by which the FCA can return all sums recovered. It also perpetuated a freezing injunction against Noerus Investments Ltd with the aim of helping to recover more funds.

The FCA originally issued writs not just against people who promoted and operated the scheme, but also against other unauthorised parties whose actions facilitated it. It has already reached a settlement with some of these respondents.