FCA seeks ban for debt management boss over client money breach
The FCA has published a decision notice seeking to ban Darren Lee Newton after he used customers’ money for the purchase of a debt management firm.
The regulator's investigation found that Newton purchased First Step from Christine Whitehurst with £322,500 of client money, which the "showed a serious lack of honesty and integrity".
Whitehurst and her husband were banned by the FCA in October 2017 for dishonestly misappropriating money from First Step.
The FCA says Newton knew the money should only have been used to pay customers’ creditors or to be returned to customers but were paid to Mrs Whitehurst despite First Step having a significant client money shortfall in its accounts of over £6 million.
The firm went into administration on 28 May 2014 with a client money shortfall of £7,156,036 from over 4,000 customers.
Newton is disputing the FCA’s decision and has referred the matter to the Upper Tribunal where both the FCA and Newton will be able to present their cases.
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