The FCA hasstartedcriminal proceedings againstKerry Nelsonand Jacqueline Stephensforalleged fraud,forgery, and money laundering.
Kerry Nelson was director of both Nexus Independent Financial Advisers Limited (Nexus IFA) and Nexus Investment Managers Limited (Nexus IM). Jacqueline Stephens was business operations manager at the same firms.Ms Nelson and Ms Stephens have been charged with allegedly defrauding four clients between January 2019 and January 2023, who lost £2m. They are also charged with using false documents in the process of committing the alleged fraud. Ms Nelson has also been charged with a further money laundering offence, after money was allegedly withdrawn from the firms. The FCA claims that the funds transferred from the accounts by Ms Nelson were used to fund her extravagant lifestyle. Ms Nelson and Ms Stephens appeared before Portsmouth Magistrates’ Court on 28 February 2025. Ms Nelson has pleaded not guilty to all offences and Ms Stephens gave no indication of plea at this time. The matter was sent to Portsmouth Crown Court and their next appearance will be on 31 March 2025. Both individuals have been released on conditional bail.Therese Chambers, joint executive director of Enforcement and Market Oversight, said:'We allege that over a 4-year period, Ms Nelson and Ms Stephens took advantage of their clients’ trust, forged documents and diverted millions. It is right that these matters are scrutinised by the court.' This case took 24 months from opening to criminal charges, compared to an average of 42 months for cases closed in 2023/24. This is another example of how the FCA is improving the pace of its enforcement investigations.Notes to editorsKerry Nelson was born on 21 December 1972.Jacqueline Stephens was born on 19 November 1964.Fraud by abuse of position is an offence under sections 1 and 4 of the Fraud Act 2006.Using a false instrument is an offence under section 3 of the Forgery and Counterfeiting Act 1981.Converting or transferring criminal property is an offence under section 327(1) of the Proceeds of Crime Act 2002 (1 offence). Nexus IFA and Nexus IM were authorised by the FCA with permissions which allowed Nexus IFA to provide investment, mortgage and pension advice and Nexus IM to provide a Discretionary Fund Management service to its clients. Neither firm were permitted to hold or control client money. These permissions ran from 15 November 2012 and 14 April 2014 respectively until 25 January 2023 when the FCA imposed restrictions on those permissions which stopped both firms from carrying on regulated activity and prevented them from reducing the value of the assets they held. On 26 January 2023, the High Court placed Nexus IFA and Nexus IM into administration and appointed Carl Faulds and Nicola Layland of Leonard Curtis as Joint Administrators. Both firms were subsequently sold by the Administrators to Vintage Wealth Management Limited on 9 March 2023 following FCA consent.