Fraud Squad Swoops On Suspected £30m Ponzi Scam


Detectives have swooped to close down a suspected £30 million international Ponzi fraud based in Britain.

Police arrested an unnamed 59-year-old man in East Yorkshire after a deluge of complaints from all over the world.

City of London Police fraud detectives are leading the investigation.

They were tipped off about the suspected scam when complaints to police and anti-fraud web sites started pointing at the man in Yorkshire.

Altogether, they received around 375 complaints from several countries. The losses of investors added up to more than £10 million from 70 complaints lodged with the police Action Fraud web site.

Millions lost worldwide

One group of investors ploughed £4 million into the scheme, which has been lost.

The investigation was triggered in December, then handed over to the City of London Police, who specialise in investigating complicated fraud offences.

Detective inspector Nigel Howard said; “I can confirm we have arrested a man who is helping us with our inquiries after hundreds of complaints about an alleged fraud.”

Ponzi frauds tend to follow the same model – a scammer takes deposits from investors and offers them higher than average returns on their investment. Their profits are paid out of deposits made by new investors.

Eventually, the source of new investors dries up, leaving the investors out-of-pocket.

Warnings about bogus advisers – Worldwide

Here are the latest rogue financial firm warnings on the International Organisation of Securities Commissions web site:

  • Katana Securities – Hong Kong
  • Setoption Corporation – Switzerland
  • Grupa Produkcyjna Adrenalina SA – Poland
  • OneTwoTrade – Canada
  • BDES Group Ltd trading as Prime Financial Management Services and as Prime S Pro – Canada
  • MaxOptions – Switzerland
  • Up & Down Marketing Limited trading as OneTwoTrade and HasOptions – Canada O
  • Optionbinaire AMF– France
  • Hope Investment Group – Canada
  • Nadex Pro Signals – Canada

Warnings about bogus advisers – UK

Here are the latest bogus financial advisers listed on the Financial Conduct Authority (FCA) web site:

  • Highpoint Trustees Limited (clone web site)
  • En.FI.MA Ltd/ Enfima Private Bank
  • Cerberus Generale LLP
  • Payday Party
  • National Debt Plan
  • Axel Neumann (clone web site)
  • Maple Securities (U.K.) Limited and Maple Securities (clone web site)
  • Eligere Investments PLC
  • KSF Trade (Marshall Advanced Innovation Ltd)
  • EuroCap Investments PLC
  • Loan and Credit Solutions Limited
  • Montana Leon LP

Dealing with an unregulated firm

If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.

Checking if a firm is regulated

Go to the Financial Services Register to check if a firm is regulated in the UK.

Reporting a suspected bogus adviser

Find out how to report unauthorised advisers on the FCA web site