Nine reality TV stars have been charged with promoting unauthorized business schemes on Instagram, the Financial Conduct Authority (FCA) said on Thursday in the first crackdown against financial influencers, or “fininfluencers”.
Emmanuel Nawanze, 30, and Holly Thompson, 33, provided advice on trading high-risk foreign currency derivatives via the social media platform between May 2018 and April 2021 without a mandatory license from regulators, the authority said.
The FCA alleges Nwanze also invited reality TV stars and paid 25- to 37-year-old pix Chris, Jamie Clayton, Lauren Goodker, Rebecca Gormley, Yasmin Ohello, Scott Timlin and Eva Zabiko to promote the @holly_fxtrends Instagram profile. .
Chris, Clayton and Gormley took part in the reality show Love Island, while Goodger and Ohello were the stars of “The Only Way Is Essex”. They have 4.5 million followers on Instagram.
Thompson, Chris, Clayton, Goodger, Gormley, Ohello, Timlin and Zabico were charged with unlawfully communicating financial advertisements, and face fines and two years in prison.
Nwanze was also accused of running an unauthorized investment scheme. He can be fined or imprisoned for up to two years.
The FCA has urged anyone who has relied on them and suffered losses to contact the authority. Reuters could not immediately identify the lawyers involved.
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