Social media influencers with a combined Instagram following of 4.5 million have been charged by the UK’s Financial Conduct Authority (FCA) for promoting unauthorized investments. Among those accused is Lauren Goodger, known for her role on the ITV reality show The Only Way is Essex, and Biggs Chris from Love Island.
The FCA’s charges stem from allegations that these influencers were paid to promote a scheme involving contracts for difference (CFDs) without the necessary authorization. This marks the first prosecution by the FCA against influencers related to financial promotion breaches.
The FCA has stated that CFDs are high-risk investments used to speculate on asset prices, particularly in foreign currencies, with 80% of customers reportedly losing money in such investments. Emmanuel Nwanze, 30, and Holly Thompson, 33, allegedly operated an Instagram account, @holly_fxtrends, providing unauthorized investment advice.
Nwanze is accused of running the foreign exchange trading scheme and issuing unauthorized financial promotions. He reportedly paid influencers to promote @holly_fxtrends to their followers, including Love Island stars Jamie Clayton, Rebecca Gormley, and Eva Zapico, as well as Towie’s Yazmin Oukhellou and Geordie Shore’s Scott Timlin.
All accused, including Nwanze and Thompson, face charges related to unauthorized communications of financial promotions and could be sentenced to up to two years in prison if convicted. They are scheduled to appear before Westminster Magistrates Court on June 13.
