A fraudster who ran a £70m Ponzi-style funding rip-off has been discovered responsible.
Anthony Constantinou was convicted of 1 rely of fraud, two counts of fraudulent buying and selling and 4 counts of cash laundering at Southwark Crown Court on Monday.
The 41-year-old didn’t attend the later phases of his seven-week trial, and a global arrest warrant has been issued to hint him.
Constantinou, of no fastened handle, ran Capital World Markets (CWM) which supplied buyers returns of 60% per yr on what he claimed have been risk-free overseas trade (FX) markets.
CWM operated from late 2013 to early 2015, and Constantinou advised buyers they might obtain returns of 5% per 30 days and people who launched buyers to CWM additionally obtained a lower.
In the early phases of the rip-off, buyers have been advised there was an preliminary minimal funding of £50,000, however this elevated to £100,000 within the later phases.
Prosecutors advised the courtroom those that signed up have been taken in by CMW’s high-end City of London workplaces and high-profile sports activities sponsorship offers, together with one with Premier League membership Chelsea.
Despite vital funds from greater than 250 identified victims, the cash was not being invested in overseas trade and the purported returns have been being paid again to the buyers from their very own and others’ invested capital, City of London Police stated.
Investors have been advised comparable tales about what would occur to their cash and the way the scheme labored: solely 10% of capital was risked and the remaining 90% was held safely in a “segregated account” in Germany.
Investors have been reassured the danger was additional decreased, with the ten% being protected by matching funds in CWM and a assure from Constantinou himself.
Evidence instructed that regardless of others having key roles within the rip-off, Constantinou was the one one that knew what was actually happening with the corporate, City of London Police added.
The investigation into Constantinou and CWM started in 2014.
After an preliminary investigation, law enforcement officials made the choice to cease the scheme earlier than it collapsed to protect as a lot cash as attainable for buyers and to cease additional folks falling sufferer to the rip-off.
Officers searched the Heron Tower workplaces of CWM within the City in March 2015 and arrested Constantinou.
Following the search, an investigation of CWM’s funds confirmed extravagant spending from shoppers’ funds, together with £3m spent by Constantinou on way of life occasions, together with his wedding ceremony and a CWM launch get together.
Detective Inspector Nichola Meghji, from City of London Police, stated: “Throughout this lengthy investigation, Constantinou has continued to try to deceive officers and deny any wrongdoing. In a further move to deny any involvement in this case, he decided to stop attending his trial.
“We are glad that the jury has seen by way of his lies and unanimously discovered him responsible.”
The courtroom heard final week that Constantinou was lately arrested in Bulgaria with faux id paperwork however was launched and stays at massive.
He is because of be sentenced in his absence on 9 June.
Source: information.sky.com”