FCA launches criminal proceedings against operator of ‘Kube Trading’ scheme

The FCA has launched criminal proceedings against Lee Steven Maggs of Sittingbourne, Kent, for 2 counts of fraud and 1 count of breaching the Financial Services and Markets Act 2000 (FSMA).

From March 2019 to January 2021, Lee Steven Maggs operated an unauthorized investment scheme called “Kube Trading”. This scheme has been confirmed as a scam. And it took about £2.67million away from the investors.

The FCA alleges the scheme involved trading contracts for differences in FX, which is a regulated activity. Maggs is alleged to defrauded investors by misrepresenting how the scheme was operated and over the handling of investor funds.

The three counts are as follows:

Carrying on regulated activity (namely managing investments) whilst unauthorized, contrary to section 19 and section 23 of the Financial Services and Markets Act 2000. Fraud by abuse of position, contrary to section 1 and section 4 of the Fraud Act 2006. Fraud by false representation, contrary to section 1 and section 2 of the Fraud Act 2006.

According to the report, Maggs appeared at Maidstone Magistrates Court on 23 April 2024. The case was sent to Maidstone Crown Court for a plea and trial preparation hearing on 21 May 2024.

Offenses under section 1 of the Fraud Act 2006 carry a maximum sentence of 10 years imprisonment.