Two admit fraud after four advice clients lose £2 million
Kerry Nelson and Jacqueline Stephens pleaded guilty at Portsmouth Crown Court on October 12, 2026, after four clients lost £2 million. The Financial Conduct Authority (FCA) brought the charges.
False documents and abused trust
Nelson directed Nexus Independent Financial Advisers Limited and Nexus Investment Managers Limited; Stephens was their business operations manager.
Both admitted all FCA charges, involving client fraud between January 2019 and January 2023 and false documents.
Nelson also admitted money laundering after withdrawing money from the firms to fund her lifestyle.
Therese Chambers, FCA executive director of enforcement and market oversight, described a serious breach of trust and pledged continued action against client exploitation.
Sentencing is set for December 10, 2026, at Portsmouth Crown Court.
The FCA will seek confiscation of Nelson's criminal benefit under the Proceeds of Crime Act 2002.
Advice permissions excluded client money
Both firms were FCA-authorised.
Nexus IFA could provide investment, mortgage and pension advice; Nexus IM could provide discretionary fund management.
Neither could hold or control client money.
On January 25, 2023, the FCA barred both from regulated activity and from reducing the value of their assets.
The High Court placed both into administration on January 26, 2023.
Criminal proceedings began in February 2025; the FCA reported the guilty pleas on October 13, 2026.
Three statutory bases
Abuse-of-position fraud falls under sections 1 and 4 of the Fraud Act 2006.
False instruments fall under section 3 of the Forgery and Counterfeiting Act 1981.
Converting or transferring criminal property falls under section 327(1) of the Proceeds of Crime Act 2002.