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Ex-City trader jailed for £32m ‘Ponzi’ fraud

Ponzi Scam Fraud Gavel Law 480

A former City stockbroker has been jailed for 13 years after admitting a Ponzi scheme fraud which triggered investor losses of over £32m.

Former City trader Nicholas David Andrew Levene from Barnet in Hertfordshire was sentenced this week at Southwark Crown Court after pleading guilty on 24 September to 12 counts of fraud, one count of false accounting and one count of obtaining a money transfer by deception.

Levene admitted that between April 2005 and October 2009 he told investors he had bought shares on their behalf, when instead funds were diverted to his own personal, business or gambling accounts.

Between 1 January 2005 and 31 October 2009, Levene obtained over £250m from investors. Over £18m of investor monies was used to buy property in the UK and Israel, or spent on overseas travel, holidays and lifestyle expenses.

The Serious Fraud Office is pursuing a confiscation order on Levene’s assets and says it will seek compensation for victims.

Passing sentence, Judge Beddoe QC said: “It was a fraud from the outset, where countless lies were told. It was rank dishonesty.”

Hudson Green & Associates principal Ian Hudson says: “This guy intentionally set out to con people. It is despicable.”

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