Over a dozen convicted in multi-million pound fraud investigation
Multiple people were duped by 'Ponzi' investment schemes
A multi-million pound fraud investigation – one of the biggest ever undertaken by North Yorkshire Police – has concluded after years of trials.
Investigators interviewed witnesses from across the UK, Europe, America and the Far East, and examined bank records linked to dozens of individuals and companies, as part of “Operation Circus Two”.
More than a dozen defendants have now been convicted and sentenced, meaning details of the fraud can be revealed for the first time by the police.
The investigation into the fraudulent investigation schemes started in 2015. As a result of a previous investigation – “Operation Circus” – the force received reports of an investment scheme that was dubious and likely fraudulent.
Enquiries identified a number of North Yorkshire-based victims, and uncovered several complex and convoluted ‘Ponzi’ investment schemes.
Such schemes, similar to ‘pyramid’ schemes, are elaborate frauds that lure investors with promises of huge returns, paying profits to early investors with funds from more recent investors.
The investors believed they were dealing with honest, law-abiding, professional people, and investing their money in a safe, virtually risk-free scheme which would net them a large return. Their trust was abused and in reality although some people received some of their money back many got nothing.
Although difficult to quantify a definitive figure, it’s believed that in total investors lost around £30 million.
After a three-year investigation by North Yorkshire Police, UK-based suspects involved in the schemes were charged.
A trial of some defendants started in 2020, but was abandoned after 10 weeks due to the coronavirus pandemic, and did not recommence until the spring of 2022.
There followed a series of four trials, all held at Birmingham Crown Court – due to the required courtroom size, and the length of time needed to hear all the evidence.
The first trial, all connected in different ways to the schemes, lasted 25 weeks, with the verdicts delivered in December 2022.
Five were given jail terms, and one was handed a suspended sentence.
A second trial, of four West Midlands-based defendants, began in December 2022. After eight months, three of the four were found guilty.
The third trial of two further defendants started in September 2023, and concluded just before Christmas. Both were found guilty of fraud offences.
A recent retrial of one man found him guilty of fraud.
A Proceeds of Crime confiscation investigation will now follow.
DI Janine Mitchell, Head of Economic Crime at North Yorkshire Police, said:
“I’d like to pay tribute to the small team of investigators, who managed a vast and complex investigation with commitment and professionalism. This investigation was a herculean effort and the guilty verdicts and lengthy jail terms given to many of the defendants are a testament to their determination to secure justice.
“The frauds investigated as part of this operation didn’t just target wealthy investors. Some of the victims were elderly and vulnerable, and others were working people like plumbers, carpet fitters, postal employees and even a retired police officer.
“I hope coverage of this investigation will serve as a reminder to be vigilant against investment fraud: before making significant financial decisions, speak with trusted friends or family members, or seek professional independent advice.