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FCA’s first Serious Crime Prevention Order is imposed
An illegal money lender has been sentenced to three and a half years imprisonment by a judge in Southwark Crown Court, after guilty verdicts for offences under the Consumer Credit Act 1974 and the Financial Services and Markets Act 2000. In addition to this custodial sentence,
Dharam Prakash Gopee (64) has been issued with a Serious Crime Prevention Order (SCPO) to severely restrict his ability to carry out this type of crime in the future. This is the first time the Financial Conduct Authority (FCA) has sought such an order. Between 2012 and 2016, Mr Gopee acted
as an illegal lender, despite being refused a consumer credit licence by the OFT, or securing any authorisation from the FCA. He loaned money to vulnerable consumers
at high interest rates, securing the loans against their property, and then sought to take possession if they failed to pay.
Disruptive leadership
Business leaders have been told to keep focus and seek co-operation to achieve success. Speaking at Regent’s University London,
Mark Carney, governor of the Bank of England, said: “How to lead in such a world? First, define your purpose and stick to it obsessively. And remember that purpose, including of business, must be grounded in the objectives of clients, society, and humanity. As John Kay has observed: ‘Profit is no more the purpose of business than breathing is the purpose of living.’ “Second, in a world of division, fusion will
bring breakthroughs. Select your teams wisely and recognise that, while diversity is a reality, inclusion is a choice. Take it. “Third, while you should always marshal your facts, you must engage people’s
Over the four-year period, his own loan
books showed that he issued approximately £1m worth of new loans and took in at least £2m in payments from old and new consumers, none of whom were aware that he did not have a licence. The SCPO will begin on Mr Gopee’s
release from custody, and will last for five years. It includes conditions prohibiting him from conducting any business in the credit sphere, limits the number of bank facilities he is permitted to operate, and requires him to make disclosures of those banking facilities to the FCA. Breaching the terms of the order is a criminal offence, punishable by up to five years’ imprisonment. In sentencing, trial judge HHJ Beddoe
noted that Mr Gopee was aware of the regulator's serious concerns, but ignored them, deciding to “deliberately flout the law”, ignoring the fact he had lost his licence, and endeavouring to enforce agreements he knew were not enforceable, but that debtors did not. He continued to pressurise debtors with
demands for payment, threatening court action that he knew could not be sustained. HHJ Beddoe added Mr Gopee’s business
intuitions and win their trust in order to convince them. Do this through empathy – the antidote to righteousness. Be open to dialogue and remember Henry Ford’s advice that, ‘the secret of success is to see things from another person’s point of view’.”
It is coming. 8
www.CCRMagazine.com March 2018
practices “exploited the weaknesses and vulnerabilities of many, many people” who were unaware that their trust in him was misplaced. He described the new scheme constructed by Mr Gopee, as involving one contrivance after another in an attempt to get around the law, showing “a horrid pattern of exploitation”. Mark Steward, director of enforcement
and market oversight at the FCA, said: “The court is sending a very clear message that deliberate and repeated offending will lead to long periods of imprisonment.”
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