A Ponzi scheme orchestrated by a gang of fraudsters using aliases from popular TV shows has highlighted the urgent need for increased fraud awareness. This case, involving a staggering £1 million stolen from innocent victims, is a powerful example of the destructive nature of investment scams.
This elaborate investment scam, executed under the guise of legitimate business, involved the companies Choice Option and later Blue Crest Capital Options. The fraudsters, posing as brokers, engaged in cold-calling, a technique where they directly approached potential investors. These unsuspecting individuals were lured into investing in what was presented as a profitable managed account scheme. However, the reality was far more sinister.
A Sophisticated Scam Unfolds
Sujanthan Sotheeswaran, 35, Darren Peck, 43, and Denis Deegan, 49, led the Ponzi scheme. These individuals falsely represented themselves as successful brokers, claiming to generate significant profits for the company and its investors. In truth, they diverted these investments for their gain, a classic hallmark of an investment scam.
To lend credibility to their fraudulent activities, the gang adopted aliases from well-known TV shows and films, including Jonathan Hart from the 70s show Hart to Hart, characters from the 2014 film The Riot Club, and Harvey Specter from the US legal drama Suits. This strategic use of familiar names was a manipulative tactic to build trust and rapport with potential victims.
Unravelling of the Scam
At the heart of this Ponzi scam was the investment mechanism, which involved investors depositing their funds with the company for trading on the binary options market. They were promised a fixed monthly return and a significant overall profit after a year. However, the trading platform was a façade. It was not connected to any legitimate banking system, rendering the investors’ funds merely a tool at the fraudsters’ disposal. As the trial progressed, it became evident that the operation was a Ponzi scheme. By October 2016, the investors faced a grim reality: they could no longer access their online accounts, contact company staff, or withdraw their funds.
The intervention by the City of London Police was a critical turning point after receiving reports in February 2016 from investors who grew suspicious of the trading company’s legitimacy in February 2016. The police interviews with the brokers at Choice Option revealed much about their tactics. While Deegan and Sotheeswaran responded with ‘no comment’ to all inquiries, Peck provided a full account, claiming he believed in the authenticity of the investment as he witnessed trades being executed on the platform.
The Importance of Fraud Awareness and Vigilance
This case is a stark reminder of the perils of investment scams and the importance of fraud awareness. Hayley Wade, a Financial Investigator from the Civil Recovery Team at the City of London Police, emphasises that no investment is ever entirely foolproof. She warns that if an investment opportunity seems too good to be true, it likely is. Wade advises potential investors to take a moment to think before parting with their money, especially when faced with high-pressure tactics from brokers.
Wade also highlighted the bullish tactics and insatiable greed characteristic of such fraudulent schemes. The people behind these Ponzi scams are often ruthless in their pursuit of money, disregarding the devastating consequences for the investors they target. She advised seeking the opinion of an independent financial advisor. She underscored the importance of not risking more than one can afford to lose, even if an investment seems credible.
A Cautionary Tale
The exposure of this £1 million Ponzi scheme is a cautionary tale about the ever-present threat of investment fraud. It underscores the need for vigilance and thorough research before making investment decisions. Potential investors must approach opportunities with scepticism, seek independent advice, and stay informed to avoid falling prey to such deceptive practices. In the world of investment, awareness and caution are the best defences against the devastating impact of fraud.
The case of Sotheeswaran, Peck, and Deegan also revealed how these fraudsters used elaborate and detailed marketing materials, often plagiarised from respected trading firms. This is done to deceive their victims. Their eventual sentencing should serve as a deterrent. Demonstrating that fraudulent activities will eventually be brought to justice, no matter how cleverly executed.
The Aftermath
Southwark Crown Court convicted three individuals of fraud by false representation. The court sentenced Sujanthan Sotheeswaran, who resides at The Forum in Molesey, to three years in prison for his involvement. Darren Peck, 43, from Leighton Road in Kentish Town, received a 21-month suspended prison sentence over two years. He must also undertake 25 days of rehabilitation activities and complete 100 hours of unpaid work. Meanwhile, Denis Deegan, 49, of David Wildman Lane in Mill Hill, received a prison sentence of two years and eight months.
The victims can take solace in the fact that some justice has been served, a rarity in many cases. However, the leniency of the sentences given to the perpetrators has raised eyebrows. For a scam that siphoned off over £1 million, and with uncertainty surrounding the restitution of funds to the victims, a maximum sentence of three years appears inadequate. Especially when we take into account that the victims will have suffered untold emotional distress.
