Eight men have been convicted for their parts in the operation of an unauthorised collective investment scheme which led to 110 investors losing over £4.3m.
In a case brought by the Financial Conduct Authority, Scott Crawley, Dale Walker, Daniel Forsyth, Brendan Daley, Aaron Petrou, Ross Peters, Adam Hawkins, and Ricky Mitchie were convicted for their part in the scheme.
Between July 2008 and November 2011 the defendants were involved in the operation of a Ucis through three companies: Plott Investments Ltd - which changed its name to Plott UK Ltd - European Property Investments (UK) Ltd, and Stirling Alexander Ltd.
Salesmen for the companies cold-called potential investors to sell them agricultural land that the companies had bought for minimal amounts, as well as land the companies did not own. Using sales scripts, “misleading” promotional material and “high-pressure” sales techniques, they “lied” about the current and future value of the land.
The scheme took at least £4.3m from investors and none of them have seen a return, the regulator said.
The defendants were convicted of various offences including conspiracy to defraud; conducting investment business without FCA authorisation; possessing criminal property; and providing false and misleading information to the Financial Services Authority in a compelled interview.
Mr Peters also admitted being in contempt of court by breaching a restraining order obtained by the FSA, after dissipating over £237,000 from bank accounts and disposing of Rolex watches and two racehorses.
Georgina Philippou, acting director of enforcement and market oversight at the FCA, said that the severity of the sentences shows how seriously the courts view this kind of offending.
“People put their homes and retirements at risk on the back of promises of high returns that were never going to be realised.”
The solicitor to the scheme, Dale Walker, received nearly £900,000 of the proceeds of crime into his accounts, and was described by the judge in sentencing remarks as having “deliberately frustrated and delayed the FCA’s investigations”.
The investigation was one of the largest undertaken by the FCA to date, using its civil powers against two of the companies through which the scheme operated.
Mr Crawley was sentenced to a total of eight years’ imprisonment; Mr Walker to five and a half years’ imprisonment; Mr Forsyth to two years’ imprisonment; Mr Daley to 15 months’ imprisonment suspended for two years with an electronically monitored curfew for four months; Mr Petrou to five years’ imprisonment; Mr Peters to five and a half years’ imprisonment and Mr Mitchie to four months’ imprisonment, suspended for 18 months.
The sentencing of Mr Hawkins has been adjourned until a later date. Mr Walker, Mr Forsyth, Mr Petrou, and Mr Peters were disqualified as directors for periods ranging from 5 to 10 years, while Mr Crawley and Mr Daley had already been disqualified as directors following action taken by the Insolvency Service.
Confiscation proceedings are being pursued against all defendants.
peter.walker@ft.com
