A fraudster who ran a £70m Ponzi-style funding rip-off has been discovered responsible.
Anthony Constantinou was convicted of 1 depend 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 levels of his seven-week trial, and a global arrest warrant has been issued to hint him.
Constantinou, of no mounted tackle, ran Capital World Markets (CWM) which provided buyers returns of 60% per 12 months on what he claimed have been risk-free overseas change (FX) markets.
CWM operated from late 2013 to early 2015, and Constantinou informed buyers they might obtain returns of 5% monthly and people who launched buyers to CWM additionally acquired a lower.
In the early levels of the rip-off, buyers have been informed there was an preliminary minimal funding of £50,000, however this elevated to £100,000 within the later levels.
Prosecutors informed the court docket those that signed up have been taken in by CMW’s high-end City of London workplaces and high-profile sports sponsorship offers, together with one with Premier League membership Chelsea.
Despite important funds from greater than 250 recognized victims, the cash was not being invested in overseas change 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 informed related 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 chance was additional lowered, with the ten% being protected by matching funds in CWM and a assure from Constantinou himself.
Evidence advised that regardless of others having key roles within the rip-off, Constantinou was the one one who knew what was actually occurring 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 potential 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 purchasers’ funds, together with £3m spent by Constantinou on life-style occasions, together with his wedding ceremony and a CWM launch social gathering.
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 means of his lies and unanimously discovered him responsible.”
The court docket heard final week that Constantinou was not too long ago 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.
Content Source: information.sky.com