FSA Takes Action Over Unauthorised Share Scheme

by Robin Pilgrim, LawAndTax-News.com, London

12 October 2006

The UK's Financial Services Authority (FSA) on Tuesday obtained an interim injunction at the High Court against Treadstone Corporation Ltd and its director, Thedfred Lemont Shepherd for allegedly operating unlawfully by promoting and selling shares to UK investors without authorisation from the FSA.

This action is intended to stop Treadstone and Mr Shepherd from continuing these activities. It also freezes their assets and other assets under their control up to GBP500,000.

The FSA is continuing its investigation and is seeking further information on the company and its principals.

According to the FSA, since May 2006, Treadstone and Mr Shepherd have arranged cold calling of UK investors to persuade them to buy shares which may have been issued by a Finnish company called Tramigo Limited. The Authority believes that over 150 investors have paid in excess of GBP400,000 for such shares.

A further hearing has been set at the High Court on Friday 13 October, where Treadstone and Mr Shepherd will have the opportunity to oppose the FSA's action.

Because neither Treadstone nor Mr Shepherd are authorised by the FSA, investors may not claim compensation from the Financial Services Compensation Scheme or make a complaint to the Financial Ombudsman Service.

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