The National Commission for Companies and the Stock Exchange (Consob) has ordered severe administrative sanctions against Emanuele Giullini and Mauro Rizzato, already known for their involvement in judicial investigations related to an alleged cryptocurrency scam. The case concerns the company New Financial Technology, accused of having swindled thousands of Italians, causing millions in damages.
Fines and prohibitory sanctions
In detail, Consob imposed an administrative fine of EUR 120,000 and an ancillary disqualification san ction for a period of twelve months on Emanuele Giullini. Mauro Rizzato, on the other hand, was fined EUR 90,000 and an ancillary disqualification sanction for nine months.
Violation of financial rules
The alleged infringement relates to theabusive public offering of investments of a financial nature via the internet. This was carried out using a dedicated website and a network of agents, with the aim of reaching a large number of investors. The use of such a pervasive medium as the web exposed numerous individuals to potentially significant financial losses, lending particular gravity to the perpetrators’ conduct. The supervisory activity carried out by the Consumer Protection Division, Office for the Supervision of Abusive Phenomena has revealed that, in the absence of a prospectus approved by Consob, an activity of offering for subscription to the public resident in Italy investment contracts with a predetermined financial return, parameterized to the capital paid by the investor and obtained through alleged algorithms that would have automatically carried out arbitrage transactions on cryptocurrencies traded on different platforms, qualifying as financial products, was carried out.
Period of Violation
Consob found that the violation lasted from August 2020 to June 2022. During this period, thousands of investors were involved in investments that turned out to be fraudulent, causing substantial financial damage.
Implications and impact
The use of the Internet to promote financial investments without proper authorisation is a serious breach of regulations. The widespread distribution of such offers via the web makes it even more difficult for the regulatory authorities to monitor and prevent such scams. Consob’s decision to impose such severe administrative sanctions highlights the authority’s desire to protect investors and to severely punish those who operate outside the rules. The fine is a deterrent for future unlawful behaviour, while the prohibitory sanction prevents those responsible from operating in the financial sector for a significant period.
Future implications
The cryptocurrency scam orchestrated by Emanuele Giullini and Mauro Rizzato through New Financial Technology is a clear example of the risks associated with unregulated investments promoted online. Investors should always check the reliability of platforms and financial operators before making any investment. With these sanctions, Consob has demonstrated a strong commitment to protecting the Italian financial market and safeguarding savers from fraudulent practices. This case serves as a warning to anyone considering violating financial regulations, emphasising that the consequences can be extremely severe.
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