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Nine convicted in £70m boiler room fraud

Two men have been convicted for their roles in a £70m boiler room fraud, believed to be the largest ever boiler room fraud pursued by a UK authority.

It means nine individuals have now been convicted in relation to the scam following an investigation by the Serious Fraud Office, as the convictions of seven others last year can only now be reported fully.

Australian national Jeffrey Revell-Reade was this week convicted of one count of conspiracy to defraud at Southwark Crown Court.

Between 2003 and 2007, he masterminded a boiler room fraud which took £70m from over 1,000 UK investors.

The SFO says those behind the fraud used its profits to fund “lavish lifestyles” including luxury yachts and private jets.

Under the scheme, sales operations in Madrid sold shares in US-listed companies.

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

Anthony May was also found guilty of one count of conspiracy to defraud. He administered the processing of shares to investors and managed the finances of the scam.

Revell-Reade and a third defendant, Robert Manning, were found not guilty of one charge of corruption arising from the conduct of the fraud.

In May 2013, six individuals were sentenced to between three and seven years in jail as a result of the same investigation. They were convicted by a jury on an indictment containing a single count of conspiracy to defraud.

The individuals formed the senior management and operations team for three Madrid boiler rooms and conspired with Revell-Reade and May to defraud investors.

A seventh individual, Michelle Coleman, pleaded guilty to three counts of money laundering last year. The total laundered sum was £252,425, of which she personally retained £158,000.

She was sentenced to 21 months imprisonment, suspended for two years.

SFO director David Green says: “Over 1,000 UK investors were defrauded by these criminals, who caused substantial financial damage and hardship. 

“The victims were deliberately charmed, lied to and bullied, whatever it took to make them send their money to these criminals. The profits from this fraudulent scheme were used to fund lavish lifestyles featuring numerous overseas properties, wine collections, luxury yachts and private jet hire.

“The convictions mark the culmination of seven years’ hard work by a dedicated team of investigators, lawyers and accountants at the SFO, and close work with other agencies.”

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  1. Are any of these form the Robbing Bank of Scotland , Bank of Scotland, Halifax – LloydsTSB Group Barclays or HSBC ? Are any of these from the Government or their sponsors ?

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