FSA/PN/108/2000
14 August 2008

A Chartered Accountant has been fined a total of £7,000 for failing to provide information to the Financial Services Authority (FSA) in connection with an FSA investigation into suspected illegal deposit taking.

Shinder Gangar, who is a partner in the firm of Certified Accountants Dobb White & Co, Lyn House, 39 The Parade, Leicester LE2 5BB, pleaded guilty on 11th August 2000 at Thames Magistrates’ Court to two offences under section 42(4) Banking Act 1987.  The offences are failing, without reasonable excuse, to produce documents and information required by the FSA for the purpose of investigating suspected illegal deposit taking in contravention of sections 3 or 35 of the Act.

Mr Gangar was sentenced to pay a fine of £3,500 on each charge and was ordered to pay £500 towards the FSA’s costs.

Mr Gangar was served with formal notices under section 42 in February and April 2000 requiring production of specified documents and records. He failed to comply fully and the FSA investigation has consequently been held up for several months. Mr Gangar’s solicitors provided some additional information on the day of the court hearing; but, prosecuting counsel for the FSA, explained that "only the commencement of a prosecution has produced a substantive response to the FSA’s requirements".

The FSA investigation centres on a suspected illegal UK deposit-taking scheme. Prosecuting Counsel told the Court that the investigation is continuing. FSA enquiries have revealed that approximately £750,000 and US$4,000,000 had been deposited into UK bank accounts controlled by the firm Dobb, White and Co. 

The FSA would like to hear from anybody who has information which would shed light on the nature of the scheme or who has placed deposits with Dobb White or Mr Gangar. Contact Cindy McDonald-James 020 7676 1236 or fax Statutory Investigations Department, FSA on 020 7676 1157.

Note to Editors:

  1. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.
  2. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.

Offences under investigation:

  1. Banking Act 1987 section 3 provides that no person shall in the United Kingdom accept a deposit in the course of carrying on a deposit-taking business unless that person is an authorised or exempted person.
  2. Banking Act 1987 section 35 provides that any person who makes a statement, promise or forecast which he knows to be misleading, false or deceptive or dishonestly conceals any material facts, is guilty of an offence if he makes the statement, promise or forecast or conceals the facts for the purpose of inducing another person to make a deposit with him or any other person.

Banking Act 1987 sections relevant to the offences:

  1. Banking Act 1987 section 42(1) provides that where the FSA has reasonable grounds for suspecting that a person is guilty of contravening sections 3 or 35 of the Act, the FSA may by notice in writing require, inter alia, that person or any other person to produce, at a time and place specified or forthwith, such documents or documents of such description as may be specified, being documents the production of which the FSA may reasonably require for the purpose of investigating the suspected contravention.
  2. Banking Act 1987 sec 42(4) provides that any person who without reasonable excuse fails to comply with a requirement imposed on him under this section shall be guilty of an offence and liable on summary conviction to imprisonment for a term not exceeding 6 months or to a fine not exceeding the 5th level on the standard scale, currently £5,000, or to both.
  3. Press Notice FSA PN/114/99 also concerns Dobb White and Co and Mr Gangar in respect of an unrelated matter.

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