SEC Orders Providence Financial to Stop Trading after UK Investors Lose £7m
Posted: Sun Aug 21, 2016 12:30 pm
The US Securities and Exchange Commission (SEC) has accused Providence Financial Investments of selling fraudulent and unregistered securities and has ordered the firm to cease trading, according to the Financial Times today.
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Sold Fraudulent Securities
The company is part of Providence Global Ltd, whose subsidiary company Providence Bonds II recently offered UK investors a ‘mini-bond’ high-yielding investment product.
The UK mini-bond documents were approved by Independent Portfolio Managers (IPM), a Financial Conduct Authority (FCA) regulated company.
IPM also approved documents and acted as a security trustee ... (read more)