In response to an application by the regulator, the English High Court has declared that Xcore Capital and Jonathan Chitty had operated an unauthorised investment scheme which took in at least £1 million from investors but only used a small amount of the investors’ money for trading.

Consumers gave money to Xcore in return for a 6% annual return in the mistaken belief that Xcore would be trading their money on the forex and equity markets. Most of the money was used instead to fund an office in Mayfair, brokers’ wages and Mr Chitty’s lifestyle. Mr Chitty’s personal spending included £102,000 on crypto-currencies, £58,000 on luxury goods, £24,000 on a Rolex watch and £20,000 towards his wedding.

The court order declares that Xcore ran a deposit-taking scheme without the necessary authorisation by the FCA, and that Jonathan Chitty was knowingly concerned in the scheme. It requires Chitty and Xcore to pay the FCA £917,231, which is the full value of all outstanding sums owed to consumers. The FCA will distribute any funds that it can recover from Chitty and Xcore to the customers.

The FCA is priding itself of the promptness of its action, as a High Court judge imposed a freezing order on the wrongdoers' assets in November. The order remains in place until the court issues a further order. Xcore contacted the investors out of the blue to offer them their great opportunity. One FCA official told consumers: "If they’re not authorised, it’s probably a scam."