Ponzi scheme organiser Kevin Foster convicted of fraud

10 March 2010 8:00 am | By Nicole Blackmore

Foster attracted £34m from investors by promising very high returns on a collection of gambling and network marketing activities.

The Serious Fraud Office says little of those funds were used for such activities, although millions were poured into an off-shore pyramid scheme while Foster paid himself and close associates substantial incomes.

After a seven-week trial at Harrow Crown Court, the jury yesterday found Foster guilty of unauthorised investment activity, deliberately concealing facts from investors and stealing investors’ funds.

The jury heard that Foster had used investors’ funds to maintain a high lifestyle for his family, purchasing a farm in Kent for over £600,000 and spending over £700,000 on motor vehicles.

He bought other properties and paid off substantial personal judgements debts, serviced mortgages and credit cards and withdrew almost £3m in cash during the course of the schemes.

SFO director Richard Alderman says: “I am very pleased with this verdict. This was a very complex investigation and the SFO was determined to bring justice for the many victims who lost their hard earned savings to this Ponzi scheme.

“I would like to thank colleagues from Kent Police and the FSA who helped us with our investigation.”

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing