Empower The People Regulatory Exposure Overview

Jurisdictional Overview

Empower The People operates across:

• United Kingdom
• United States

Its promoted services intersect with regulated financial and tax activities.

This section outlines the statutory exposure landscape.

United Kingdom Regulatory Framework

Financial Services and Markets Act 2000 (FSMA)

Activities potentially falling within regulated perimeter include:

• Claims management
• Debt management advice
• Financial promotions
• Crowdfunding or pooled fundraising

Providing such services without authorization constitutes a criminal offense under Section 19 FSMA.

Unauthorized Claims Management

Identifying and advising on:

• Mortgage disputes
• Debt discharge strategies
• Financial recovery claims

May require FCA authorization.

Absence of authorization materially increases regulatory risk.

Financial Promotion Restrictions

Section 21 FSMA restricts promotion of financial services without approval.

Marketing debt discharge or financial recovery mechanisms may fall within this perimeter.

United States Federal Exposure

IRS Civil Penalties

Improper 1099-OID filings trigger:

• Section 6702 penalties
• Refund freezes
• Transcript review and audit escalation

Federal Wire Fraud

Promoting refund-generation strategies based on improper OID filings may expose organizers to investigation under 18 U.S.C. §1343.

Wire fraud carries substantial sentencing exposure.

RICO Conspiracy Risk

Where:

• Defined enterprise structure exists
• Repeated filings occur
• Coordinated operational roles are present

Prosecution under RICO statutes becomes possible.

Proceeds of Crime Considerations (UK)

Revenue derived from:

• Unauthorized claims management
• Unlicensed debt services

May fall within the Proceeds of Crime Act 2002 framework.

This creates downstream professional risk for intermediaries.

Regulatory Risk Assessment Summary

Empower The People participants and promoters face multi-layered exposure across:

• Civil tax penalties
• Criminal fraud statutes
• Financial regulatory enforcement
• Asset recovery action

Cross-jurisdictional coordination increases seriousness of exposure.