A man was convicted yesterday of two counts of fraudulent trading in relation to a large scale ‘Ponzi scheme’ that cost investors over £1.35 million over a three year period.
A Ponzi scheme is one in which the returns offered to earlier investors are, in fact, paid out from monies paid into the scheme by new investors. While appearing to offer investment opportunities with high returns and low risk, the schemes depend on a steady influx of new investors. When these dry up, the scheme collapses, leaving later investors with little or nothing.
This most recent example concerned a man called Matthew Ames, who was the sole director of two companies, Forestry for Life and The Investors’ Club. According to the Crown Prosecution Service, the companies claimed to invest money in teak tree plantations that generated carbon credits, which could then be traded for profit.
The companies created an enticing prospectus offering high and regular returns for investors, in order to encourage them to invest. An added attraction was that investors were told that this was an ethical and environmentally friendly way to make money. In truth there was no investment by the companies, simply the use of the monies to pay company expenses and support Ames’ lifestyle.
Any employees who questioned the legitimacy of the companies’ activities were dismissed.
Charges relating to Ponzi schemes, like other fraud investigations, require specialist advice. Lewis Nedas Law has over 40 years’ experience of successfully defending clients against fraud prosecutions and are ranked in Chambers and the Legal 500 for the high quality of our fraud work.
Contact Lewis Nedas’ Criminal Lawyers in London
if you have been charged in connection with an alleged Ponzi scheme and require criminal defence advice, please contact our solicitors Jeffrey Lewis or Siobhain Egan on 020 7387 2032 or complete our online enquiry form here.
This blog post is intended as a news item only – no connection between Lewis Nedas and the parties concerned is intended or implied.