View more on these topics

Former adviser pleads guilty to Ponzi scheme fraud

Former IFA David Gerald Dixon, who created a multi-million pound Ponzi scheme, has pleaded guilty to five charges of fraud.

Dixon created the scheme through two companies known as Arboretum Sports (USA) Incorporated and Arboretum Sports (UK) Limited.

Through those companies, collectively referred to as ‘Arboretum Sports’, victims were induced into placing money into what they were told was a no-risk gambling syndicate with the potential for huge rates of return. In reality, the scheme was a dishonest vehicle for Dixon to appropriate the funds of its members. 

Dixon pleaded guilty to a series of fraud offences at Southwark Crown Court today following a joint investigation by the Serious Fraud Office and Hampshire Police.

An SFO spokesman says Dixon was previously sentenced to four and a half years in jail for stealing £1m from clients while acting as an IFA between 1988 and 1997.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. So, will the FSCS grant compensation to the clients?

  2. Gotta love no-risk gambling!

  3. Spot on Clive Moore – you do wonder about the gulibility of people. Who ever heard of no risk gambling. Can`t help but recall the old cliche – “A fool and his money are soon parted”.

  4. I trust the guy will be sent down for at least ten years.

    The nearest thing to ‘no – risk gambling’ that I know about is financial advisers raking off commissions and payments from clients irrespective of the performance of the products they recommend. Win – No Lose absolutely brilliant and it keeps the big Merc on the road!

  5. I do agree about things that seem too good to be true probably are not, but if that IFA was ‘Authorised & Regulated to give advice why should any client feel they should not believe what they are told? It is unreasonable to expect, in my view, that any client should have been suspicious of the guarantees being offered. That is why I feel FSCS should compensate. I also feel that the Government through the Regulater ought to fund the compensation. If the IFA had a record why didn’t the FSA know and why was auorisation given? Searching questions need to be asked. Perhaps a national investigation by a TV programme would find other ‘Ponzi’ schemes before they cuase more losses of innocent clkients capital.

  6. Spot on, Derek.

  7. Thank you, Karen. There is another Ponzi style scheme where the MD of a firm stole millions, but FSCS seems not to want to compensate dozens of ‘ordinary folk’ who are left owing many thousands to lenders where they never got the capital, but still have to pay the interest etc. If any like minded wants to help get a national TV or even paper to run the story pleae explore with me by calling me 07836352000. I was an IFA for nearly 30 years until pushed out by RDR.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com