FCA Charges Unauthorised Investment Adviser for Alleged £1 Million Fraud

John Burford Accused of Misleading More Than 100 Investors Through Unregulated Trading Scheme

The Financial Conduct Authority (FCA) has charged John Charles Burford, the sole director of Financial Trading Strategies Limited (FTS), for allegedly operating an unauthorised investment business and fraudulently misleading investors. The regulator believes Mr Burford unlawfully generated over £1 million between 1 January 2020 and 31 December 2023.

The FCA alleges that Mr Burford, born 23 February 1940, accepted funds from over 100 individuals and provided investment advice and management services without the required authorisation under the Financial Services and Markets Act 2000 (FSMA). These activities are suspected to have taken place via FTS’s online platform, which promoted paid daily trade alerts and offered investments into three so-called ‘Tramline’ funds.

According to the FCA, Mr Burford repeatedly misrepresented the value of the funds and concealed trading losses in communications with clients, thereby presenting a misleading picture of both investment performance and risk.

Criminal Charges & Potential Penalties

Mr Burford faces criminal prosecution for:

• Breaches of sections 19 and 23(1) of the FSMA, related to unauthorised investment activities including deposit-taking, advising, and managing investments;

• A breach of section 993(1) of the Companies Act 2006, concerning fraudulent trading and the dishonest use of investor funds.

Carrying on unauthorised business is punishable by up to 2 years' imprisonment and/or a fine, while fraudulent trading under the Companies Act carries a maximum sentence of 10 years' imprisonment and/or a fine.

He is due to appear before Westminster Magistrates’ Court on 23 May 2025.

Faster Enforcement Highlights FCA’s Strategic Shift

This prosecution marks a notable acceleration in FCA enforcement timelines. The case was opened in May 2023 and has progressed to criminal charges in 23 months, significantly quicker than the average 42-month timeframe for enforcement cases concluded during 2023/24.

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated:

Fighting financial crime is central to our new strategy and we will take action against criminal behaviour which harms consumers and damages the integrity of our markets. We allege that Mr Burford sought to defraud his clients for personal gain.

Protecting Investors from Fraud by Unauthorised Firms

This case underscores the importance of ensuring that investment advisers and fund managers are properly authorised and regulated. Investors are urged to verify the FCA authorisation status of any individual or company offering financial services or investment advice. The FCA maintains a searchable Financial Services Register for this purpose.

For more information about the FCA’s approach to tackling investment fraud and protecting market integrity, visit www.fca.org.uk.

Read the press release here.