Reality TV stars turned social media influencers, including familiar faces from shows like The Only Way is Essex, Love Island, and Geordie Shore, have found themselves in hot water as they appeared in court and pleaded not guilty to charges related to online investment schemes.
Lauren Goodger, Biggs Chris, Scott Timlin, and others have been accused of promoting an unauthorised investment scheme to their followers on Instagram, potentially facing up to two years in prison if convicted. The trial has been scheduled for 2027, as Southwark Crown Court had to accommodate the case at the earliest date available.
The Financial Conduct Authority (FCA) brought charges against the stars, alleging that they were paid to promote a high-risk trading scheme on social media between 2018 and 2021. Alongside the influencers, Emmanuel Nwanze and Holly Thompson, who are alleged to have run the scheme, also appeared in court.
The FCA claims that Mr. Nwanze and Ms. Thompson operated an Instagram account that provided advice on buying and selling contracts for difference (CFDs) investments without the necessary authorisation. These investments were described as high-risk, involving betting on the price of foreign currencies, with 80% of customers losing money.
With a collective following of 4.5 million on Instagram, the influencers involved in the case, including Jamie Clayton, Rebecca Gormley, Eva Zapico, and Yazmin Oukhellou, have been charged with promoting the scheme. While eight of the nine defendants pleaded not guilty, Ms. Zapico has a further plea hearing scheduled for September.
Mr. Nwanze also faces a count of breaching a general prohibition under the Financial Services and Markets Act 2000, which prohibits individuals from carrying out regulated activities in the UK without proper authorization. The case has certainly caught the attention of many, shedding light on the potential risks associated with online investment schemes promoted by social media influencers.
