After a 3 month trial, verdicts have been reached in the prosecution of former Redcentric directors by the FCA.
The FCA announced that the former Redcentric CFO had been sentenced to 5½ years imprisonment for two offences of making false and misleading statements to the market, and three offences of false accounting. In addition, the former Finance Director who had pled guilty was sentenced to 3 years imprisonment on charges of making false statements and false accounting. These former directors will also suffer other penalties, as set out in the FCA’s announcement.
These verdicts and sentences mark the culmination of ShareSoc’s Redcentric Campaign. We applaud the FCA for successfully carrying through these prosecutions. It is essential that those guilty of misleading investors are prosecuted, as a deterrent to others. Sadly, such prosecutions have been all too rare and we encourage the FCA to pursue such cases vigorously.
In addition to the prosecutions, some redress was obtained for Redcentric shareholders, as detailed here: Redcentric: Unprecedented Progress for Shareholders – At Last
The Redcentric outcome has been positive in our view and a useful precedent and warning has been set for others to note, pay heed to and be wary of. Hopefully this will lead to better director behaviour in all companies in future. With little further action that ShareSoc can practically take, we are now closing our Redcentric campaign and would like to thank all those that assisted in it, with a special mention to solicitors iLaw who provided valuable advice.
Mark Bentley, ShareSoc campaign leader.