Former ‘Love Island’ stars charged with promoting trading scheme on Instagram

UK regulators have charged former reality TV stars who became social media “finfluencers” with promoting an unauthorised financial trading scheme.

The Financial Conduct Authority on Thursday said it had brought charges against nine people — many appeared in shows including Love Island and The Only Way is Essex — over their involvement in promoting a foreign exchange scheme linked to high-risk derivatives on Instagram between 2018 and 2021. 

The group is accused of promoting an investment scheme run by Emmanuel Nwanze, 30, who allegedly paid seven of the social media influencers to promote an Instagram account that provided advice on buying and selling contracts for difference (CFDs) to their combined 4.5mn followers.

The FCA has been trying to crack down on “finfluencers”, who use their social media accounts to promote financial schemes or businesses.

This year the regulator laid out guidance on financial promotion on social media in an effort to “address emerging consumer harm we’ve seen arising from the use of social media”.

Communicating unauthorised financial promotions is an offence under the Financial Services and Markets Act 2000 that is punishable upon conviction by a fine and or up to two years’ imprisonment.

On Thursday, the FCA said Nwanze had been charged with one count of carrying out a regulated activity without proper authorisation, and one count of unauthorised communications of financial promotions.

Former Love Island participants Rebecca Gormley, 26, Biggs Chris, 32, Jamie Clayton, 32, and Eva Zapico, 25, were all charged with one count of issuing unauthorised communications of financial promotions.

The same charge was brought against The Only Way is Essex stars Lauren Goodger, 37, and Yazmin Oukhellou, 30, and the 2016 winner of reality show Celebrity Big Brother Scott Timlin, 36, as well as against Holly Thompson, 33.

Financial regulators imposed restrictions on the selling and marketing of CFDs in 2019, and warned that 80 per cent of customers lost money when investing in the highly leveraged instruments.

The guidelines on social media promotion are part of the consumer duty regulation, which was introduced last year to require companies to adhere to higher standards of consumer protection.

The defendants are set to appear before Westminster magistrates’ court on June 13.

None of the nine individuals immediately responded to a request for comment.