Investment adviser accused of using client money to cover gambling debts

Thursday 08 March 2018

A senior investment advisor who allegedly convinced clients to lend him thousands to cover debts generated by his “extensive” gambling habit has been banned from working in Jersey’s finance industry.

The ruling was issued yesterday against Vincent Roberts by the Jersey Financial Services Commission.

In total, the JFSC ruled that the 52-year-old had failed to “act with integrity” in his dealings with four clients he had worked with over the years.

The issues were alleged to have started in 2012, when Mr Roberts’ financial situation is said to have “deteriorated” due to his “extensive gambling activity.”

The JFSC says that the former executive director firstly advised a client with “limited investment knowledge” to sell off £15,000 of their ‘mainstream’ investment portfolio. That money, which Mr Roberts used to pay for personal expenditure and debts, was  lent directly to him at an interest rate of 8% over three years.

Pictured: Mr Roberts' activities were investigated by the Jersey Financial Services Commission (JFSC), who issued a judgement yesterday.

Unable to pay back the money when the loan matured, Mr Roberts apparently convinced his client to enter a new loan arrangement whereby the money – now standing at £18,600 with the interest – was to be paid off in a further five years, again at 8% interest.  

It's claimed a similar arrangement was struck with another client with a “below average appetite for investment” when Mr Roberts changed employer in 2017. He advised the client to ‘diversify’ their investments by lending him £30,000 – money which was also used to settle debts. Both loans are yet to mature, and the clients haven't raised a complaint with the JFSC. 

The JFSC equally found fault in his dealings with a not-for-profit company, for which Mr Roberts was also reported to have volunteered. Allowing “his poor financial standing to impair his judgement”, Mr Roberts made a dozen transfers totalling £9,500 over a period of 20 months unbeknown to the company or his employer to finance his “short-term liquidity requirements.” These were all later repaid.

One company was also reported to have suffered from misleading pension advice from the investment adviser. The JFSC says that company repeatedly sought valuations of their pension investments following a restructure suggested by Mr Roberts. But he apparently never processed the documents required for the new arrangement, meaning that it was never put in place. Nonetheless, Mr Roberts gave both written and verbal confirmations of the new value of the pensions – in one instance, even stating that there had been a “material increase.” The JFSC  notes that Mr Roberts disputes the facts of this case. 

Today we issued a Public Statement about former Independent Financial Adviser Mr Vince Charles Roberts. To read this in full: https://t.co/W8cQqWInVd

— JerseyFSC (@JerseyFSC) March 5, 2018

The cases spanned a number of years and involved two businesses – one for which Mr Roberts held the position of shareholder controller for more than a decade between 2007 and 2017, and another where he worked for just six months last year. JFSC declined to name the companies, but revealed that their investigation had been by a complaint from Mr Roberts’ long-term employer, who raised concerns over his “fitness and propriety” to comply with the industry’s code of practice last year.

Mr Roberts will now have to apply to the JFSC for a review if he wishes to work in the finance industry again.

Following their judgement against Mr Roberts, the regulatory body has now warned members of the public not to lend money to any member of the financial services industry in a personal capacity – an act they branded “unacceptable.”

They said that islanders should be wary of ‘can’t miss’ or ‘once in a lifetime’ opportunities and low investment, high return deals. Potential investors should also never feel “rushed” and should steer clear of “pushy” sales tactics.

Pictured: Mr Vincent Roberts, who has been told he can no longer work in an entity regulated by the JFSC.

“Always research the person and the company selling you the investment, even if you think you know them and believe them to be trustworthy. You may have developed a good relationship, however you should regard this as a business transaction and always ask yourself whether they are acting in your best interest, or their own,” they said. 

“Remember, if it sounds too good to be true then it usually is.”