Reality TV stars are among nine individuals charged in the UK for promoting unauthorized trading schemes on Instagram, marking the first significant action against “finfluencers,” the Financial Conduct Authority (FCA) announced on Thursday.
Emmanuel Nwanze, 30, and Holly Thompson, 33, are accused of offering advice on high-risk foreign currency derivatives trading via Instagram between May 2018 and April 2021 without the necessary regulatory authorization.
The FCA claims that Nwanze enlisted reality TV stars Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, and Eva Zapico, aged between 25 and 37, to promote the @holly_fxtrends Instagram account to their vast audiences.
Chris, Clayton, and Gormley are known for their appearances on “Love Island,” while Goodger and Oukhellou starred in “The Only Way is Essex.” Collectively, they have 4.5 million Instagram followers.
Each of the reality stars, along with Thompson, faces charges of issuing unauthorized communications of financial promotions.
This offence can result in fines and up to two years of imprisonment. Nwanze faces additional charges for running an unauthorized investment scheme, which carries similar penalties.
The FCA has urged individuals who believe they suffered financial losses due to these schemes to come forward.
The group is scheduled to appear before Westminster Magistrates’ Court on June 13. Efforts to identify the legal representatives of the accused were not immediately successful.