Prohibition for the de facto director of an investment scam in the African gold trade

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Benedict Moruthoane, 51, based in Finchley in north London, has been disqualified as a director by the High Court for 14 years after he helped defraud investors of £360,000.

Sutter Capital was incorporated in June 2018 and promised investors returns of between 15% and 22% per annum on bonds based on arbitrage transactions within the artisanal and small-scale mining market in the United States. gold all over Africa.

Between September and December 2018, the company raised £360,000 from investors. However, Sutter’s promotional material had not received the clearance required under Section 21 of the Financial Services and Markets Act 2000, and much of the material contained inaccuracies.

Although Sutter Capital received approval for three bonds in October 2018, these could only be marketed to certain categories of investors. The company, however, did not respect these restrictions.

Sutter Capital ceased operations in December 2018 and the directors have raised concerns about the conduct of directors in the insolvency service.

The subsequent investigation by the Insolvency Service established that in addition to misleading potential investors with information contained in the promotional material, the company had failed or maintained adequate records. All that was provided to investigators was a single spreadsheet, which showed payments for salaries, commissions and expenses, but no investing activity.

The sole administrator, Eugeniu Sculea, accepted last year a commitment of disqualification for a period of 11 years.

However, the High Court determined that Benedict Moruthoane had acted as the de facto administrator of Sutter Capital and ordered that he be disqualified for a period of 14 years, effective August 16, 2022.

His disqualification order prevents him from getting involved directly or indirectly in the promotion, incorporation or management of a business, without the authorization of the court.

Ian Wilson, Chief Insolvency Investigator, said:

Sutter Capital only traded for three months, supposedly increasing investments for the gold arbitrage trade. But in that short time, he took hundreds of thousands of pounds from potential investors, promising them shockingly high returns.

This case should serve as a warning that any investment plan that sounds too good to be true almost certainly is.

Notes to Editors

Benedict Moruthoane (alias Ben Moruthane, or Titakanelo Benedict Christopher Moruthoane or Ben Moore) is of British, Lesotho and Mosotho nationality, and his date of birth is June 1972.

Sutter Capital Limited (company number 11416410).

A disqualification order means that, without the express permission of a court, a disqualified person cannot:

  • act as a director of a company
  • participate, directly or indirectly, in the promotion, incorporation or management of a company or a limited liability company
  • to be a receiver of a company’s assets

Forfeiture undertakings are the administrative equivalent of a forfeiture order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a series of other restrictions.

Information about the work of the insolvency service and how to complain about financial misconduct.

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