PropertyMay 17 2017

Financial adviser and his wife convicted of £1.7m property fraud

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Financial adviser and his wife convicted of £1.7m property fraud

A “heartless” financial adviser and wife have been found guilty of fraud after the longest trial in UK criminal history.

Yesterday (16 May) Edwin McLaren, from Quarrier’s Village in Renfrewshire, was found guilty of a £1.7m property fraud.

The 52-year-old, who has worked as a financial adviser, was convicted of 29 charges.

His wife, Lorraine, also 52, was convicted of two charges despite claiming she only signed documents when her husband told her to.

The trial at the High Court in Glasgow began in September 2015 and heard evidence for 320 days.

In the fraud McLaren — who used aliases and presented himself as a financial adviser and millionaire businessman with hundreds of properties — persuaded his victims to sign forms which transferred the title deeds to their homes.

The properties were then sold on to a third party and sale proceeds paid into an account controlled by McLaren.

McLaren also raised mortgages against the homes.

Detective Superintendent Andy Lawson said the victims have been left completely distraught, some penniless and homeless.

Det Supt Lawson said it took more than four years for detectives to unpick the network of banking transfers and legal documentation for 24 properties that made up the £1.7m fraudulent conspiracy which spanned a six-year period.

He said: "In some instances, he pretended to individuals that he would give them a loan to pay off their mortgage and other debts when in fact, he had arranged the sale of their property to an associate. 

“He then continued to further deceive those victims by obtaining proceeds from the fraudulent sale from the victim. The fraud continued by using this cash as deposits for the next fraudulent transaction.

“A team of specialist search officers, telecommunications and computer forensics experts, financial investigators and criminal analysts pored over hundreds of thousands of documents, to follow the trail and identify those behind the fake racket. 

"Undoubtedly, the shameless actions of Edwin McLaren, who had the ability to persuade and dupe innocent victims and professionals into agreeing to his dishonest scheme has wreaked devastation on many people, whilst they continued to live a life of luxury.

“These are heartless individuals, driven by greed, who were ruthless financial predators, and who despite pleas for help from their victims, chose to disregard them as they focused on their financial gain.”

Judge Lord Stewart deferred sentence on the McLarens until next month for background reports.

McLaren was remanded in custody after he was found guilty of 29 charges.

His wife Lorraine was convicted of being involved in the scam to the extent of £128,000 and one charge of mortgage fraud.

She was released on bail.

Her 75-year-old uncle Arthur Horsey was found not guilty of any involvement in the scam.

emma.hughes@ft.com