Film crooks allowed to carry on
WHEN is a crime not a crime? The answer, apparently, is when the Financial Conduct Authority decides it is ‘in the best interests’ of the victims to let the crooks carry on.
This is the curious decision made by the regulator after it investigated film finance company Katherine of Alexandria Limited, which sold shares in the movie with the promise that investors would get a slice of its earnings.
The film, about the 4th Century Christian martyr, turned out to be a box-office flop.
After complaints, the regulator has ruled that the project is a collective investment scheme, a form of unit trust that must be vetted and authorised by the watchdog. It was not and the regulator has described the business as ‘a criminal offence’. Operating it without authorisation is punishable by up to two years in jail.
But the authority says: ‘We do not believe it would be in the investors’ best interests for us to pursue legal or enforcement action at the current time to close down either the company or the film investment scheme.’
It is telling investors to consider hiring a lawyer to try to recover their money.
The scheme was marketed by Hanwood Holdings Limited, which also promoted investment schemes involving the movies Riders On The Storm and Henry 5. Both were claimed falsely to feature big name stars such as Tom Hanks and George Clooney, and I warned against both schemes in 2013.
I asked the Financial Conduct Authority whether it was taking any action over these films, which have never been made and which have swallowed up investors’ funds without explanation.
I had also hoped for an explanation about the lack of criminal prosecutions. Sadly, though, last Thursday it refused to comment.