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Eight jailed over £700k investment scam
by Alex Steger on Oct 24, 2013 at 09:40
Eight investment fraudsters who tricked 73 people out of £700,000 have been jailed for up to six years at Southwark Crown Court.
The gang conned its victims by running of a boiler room which offered stock market shares at discounted prices.
The gang used the names of genuine European companies to trick investors into buying shares that did not exist.
City of London Police said that the victims were led to believe that these were legitimate firms based in the UK approved by the Financial Services Authority, but in reality they were making payments to fraudulent companies with the money being laundered through UK bank accounts that had been set up by the gang.
Detective Constable Abdun Noor said: ‘The boiler room could not have operated without this group of people willingly laundering innocent victims money. The boiler room went to great lengths to make their victims believe that these companies were genuine so they could sell more shares. It is possible there are further victims of this fraud who have not yet been identified.’
The highest sentence was handed out to Levi Coyle, 33, of no fixed abode, who was found guilty of money laundering and conspiracy to defraud. The police said Coyle would collect money from the gang members and send it to unidentified persons who ran the boiler room. His whereabouts are currently unknown after he breached bail conditions.
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