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View the article online at http://citywire.co.uk/wealth-manager/article/a754830

Nine jailed in UK's biggest boiler room fraud

by Dylan Lobo on Jun 05, 2014 at 08:15

Nine jailed in UK's biggest boiler room fraud

Two further convictions have been made in what is believed to be the largest boiler room fraud ever pursued by UK authorities.  

The convictions at Southwark Crown Court, brings the number of individuals convicted in relation to the conspiracy to nine and follow an investigation by the Serious Fraud Office (SFO) launched in 2007.

According to the SFO, the operation was masterminded by 49-year-old Australian national Jeffrey Revell-Reade with a total of around £70 obtained fraudulently from UK investors.  

The court heard Revell-Reade set up the scheme, under which sales entities operating from Madrid sold shares in US-listed companies on a fraudulent basis.

Investors in the companies bought shares that had restrictions on their resale for a 12 month period. When the investors came to sell the shares after the expiry of this period, they often found that they were unable to do so as they were worthless, and that the shares were in shell companies or companies that were not operating at all.

Anthony May, 58, who lived in Switzerland and then moved to Spain, was also found guilty of one count of conspiracy to defraud.

May administered the processing of shares distributed to investors and managed the finances of the conspiracy, using and managing off-shore bank accounts to distribute the funds obtained as part of the conspiracy.

The SFO also revealed six individuals were jailed for between three and seven years in May 2013 in relation to the same investigation. Reporting restrictions meant the SFO could not reveals these prior to today.

The six are:

Daniel Gooding, aged 39, Essex - seven-year sentence

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1 comment so far. Why not have your say?

Philip Milton

Jun 05, 2014 at 09:52

It is great these people have been jailed and I hope assets removed in total. However, it is really sad that so many innocent (and often vulnerable) people and their families continued to have their lives ruined in so many instances because action was not taken immediately the frauds were being reported - as we did from the very earliest stages. Saving these people from the pain and grief caused to them after the frauds were known would have been far more important than prosecuting the perpetrators.

The criminal laws at the time, let alone the civil ones, should have allowed the authorities that be to have acted immediately to close-down these operations and all happening right under the noses of the same European authorities which inflict so much regulatory angst against legitimate, law-abiding firms too.

Even now, national police authorities and governments are not doing enough to stamp-down on the ongoing internet scams and frauds which happen every day whereby a 'default' notice could stop most of that immediately.

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