Two small accounting firms in UK, whose assets have been frozen by the Financial Services Authority (FSA), have denied that they took millions of dollars from investors in an unlawful money scheme.
The financial watchdog obtained a court injunction against the firms, Dobb White & Co and Morris White & Co, to stop their activities. On Wednesday it issued a statement alleging that the firms and two of their partners had illegally taken some $18m (£11.5m) from investors.
The regulator said there was also evidence suggesting the firms, based in Leicester and Nottingham, had taken substantially more than that amount from overseas investors through the Internet, offering returns of between 15 and 40 percent per year.
The Serious Fraud Office is conducting an investigation into the companies and the partners, Shinder Singh Gangar and Alan White.
The firms denied any wrong-doing.
“(Our) partners will be defending themselves vigorously and in particular deny the specific allegation of being party to carrying on an unlawful investment scheme,” said Dobb White & Co in a statement on Thursday.
Both firms said their accountancy services were not affected by the injunction. Morris White & Co said Gangar had retired from the firm earlier this month. The FSA said the injunctions would continue until trial or further order of the court.