The FSA has announced this month that it has secured a court order against Sinaloa Gold plc (Sinaloa) and one of Sinaloa's directors, Glen Hoover.
Sinaloa was found to have offered shares to the public through a boiler room and without a prospectus, which is a requirement for offering shares publicly. Mr Hoover was found to have been knowingly involved in this breach, knowing all along that he was part of a boiler room scam. Sinaloa and Mr Hoover are to pay £1,097,092.11 to the FSA. This money will then be distributed amongst the victims of this boiler room fraud. Sinaloa has also been ordered not to dispose of any asset that it may hold until this payment has been made.