The FCA has instigated criminal proceedings against Lee Steven Maggs, 38, of Sittingbourne, Kent, for two counts of fraud and one count of breaching the Financial Services and Markets Act 2000 (FSMA). 

Mr Maggs is alleged to have operated an unauthorised investment scheme called “Kube Trading” which received around £2.67m from investors between 1 March 2019 and 22 January 2021.  

The regulator says the scheme involved trading contracts for differences (CFDs) in foreign exchange (FX), which is a regulated activity. Mr Maggs is accused of concealing significant losses from investors.  

The FCA also alleges that he defrauded investors by misrepresenting how the scheme was operated and over the handling of investor funds.  

He appeared at Maidstone Magistrates’ Court yesterday (23 April 2024) and the case was sent to Maidstone Crown Court for a plea and trial preparation hearing on 21 May 2024. 

Mr Maggs faces three counts: Carrying on a regulated activity (namely managing investments) while unauthorised, fraud by abuse of position and fraud by false representation.

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