A judge has slammed ex-Burns Anderson adviser Grahame Whitehead for tarnishing the reputation of IFAs, as he was jailed for 10 years for a £12m pyramid fraud.
At Chelmsford Crown Court last Thursday, judge Christopher Ball, QC, said trusting investors had been taken in by his “bare-faced lies”.
He said: “If our system is to work properly, with financial advisers, what a terrible name you have given them.”
Between 2004 until his arrest in April 2009, Whitehead duped 46 victims into investing in two fake schemes offering high returns by fraudulently using the Credit Suisse and Salvation Army brands. He transferred the money into his own bank account or to a family member.
In total, investors put £11.95m into the schemes, but Whitehead paid out £4.7m in fake interest, leaving £7.2m losses. Victims will have to wait until confiscation proceedings to find out if they will get compensation.