Dharam Prakash Gopee, 62, of London, appeared at Westminster Magistrates Court charged with offences under the Consumer Credit Act 1974 and the Financial Services and Markets Act 2000.

The charges came about following an investigation carried out by the FCA into Mr Gopee and the companies he controls, which include Reddy Corporation Ltd, Speedy Bridging Finance Ltd and Barons Finance Limited. 

It has been alleged that Mr Gopee operated as an unlicensed consumer credit lender and that he conducted regulated activity without authorisation over a number of years by entering into and administrating regulated credit agreements as a lender.

Consumer credit lending was previously licensed by the Office of Fair Trading (OFT) until April 2014. 

Since then, it has come under the FCA and this is the first time the regulator has taken criminal action in a case related to its consumer credit powers.

Mr Gopee is said to have acted as a lender of last resort and is alleged to have engaged with consumers who were often in difficult circumstances. 

He is also alleged to have regularly registered charges over the homes of borrowers to enable him to take possession if the borrower failed to pay back the loan.

It is believed that Mr Gopee lent in excess of £1m over the last four years, despite not holding a consumer credit licence from the OFT or the FCA.

Mr Gopee was disqualified as a director on 5th May 2016 for 15 years. 

This arose out of the liquidation of Barons Finance Limited. 

The case against Mr Gopee has been sent to Southwark Crown Court for trial, and a plea and trial preparation hearing is set to be heard on 14th February.