The Financial Conduct Authority (FCA) of the United Kingdom has brought criminal charges against Lee Steven Maggs from Sittingbourne, Kent. He is accused of two counts of fraud and one count of contravening the Financial Services and Markets Act 2000 (FSMA).

The three charges are as follows:

• Engaging in regulated activities (specifically managing investments) without authorization, contravening sections 19 and 23 of the Financial Services and Markets Act 2000;
• Committing fraud by abuse of position, contravening sections 1 and 4 of the Fraud Act 2006;
• Committing fraud through false representation, contravening sections 1 and 2 of the Fraud Act 2006.

Maggs is accused of operating an unauthorized investment scheme called "Kube Trading," which collected approximately £2.67 million from investors between March 1, 2019, and January 22, 2021.

According to the FCA, the scheme involved trading in contracts for difference (CFDs), a regulated activity. Maggs allegedly concealed significant losses from investors and is further accused of defrauding investors by making false representations about the operation of the scheme and the handling of investors' funds.

Maggs appeared in the Maidstone Magistrates' Court on April 23, 2024, for trial. On May 21, 2024, the case was referred to the Maidstone Crown Court for a plea and trial preparation hearing. Under section 1 of the Fraud Act 2006, the maximum penalty for the offense is 10 years' imprisonment.