Two men who were involved in an illegal investment scheme that conned hundreds of victims out of around £4m ($5m, €4.5m) have been found guilty.
Christopher Toynton was found guilty by a jury of four counts of fraud by false representation and five counts of fraud by abuse of position. Toynton declined to give any evidence in court and no other evidence was offered in his defence.
Ross Gibson pleaded guilty to fraud by abuse of position, carrying out regulated activities and fraud by false representation at the beginning of the trial in March.
Both men have been remanded into custody and will be sentenced on 12 May.
The case against another defendant, who was charged with carrying out regulated activities, was dropped.
Details
Detectives from the Economic Crime Unit (ECU) began investigating in the spring of 2019 following complaints of suspected fraud connected to the Lottery Syndicate Club Ltd in Spalding.
The Ponzi scheme operated between late 2017 and 2019 and had several hundred members from across England, including Lincolnshire and Cornwall. Some of the syndicate’s members also lived abroad.
Lincolnshire Police said that Toynton acted as the scheme’s sole director, and was responsible for all administration, financial transactions and contact with investors. He also appointed Gibson to be the scheme’s trader, despite his lack of professional experience or qualifications in financial investment or market trading.
Gibson acted as an “unauthorised trader and falsely claimed that trading was a success despite no profits being made”, the Police added.
Around £4m was invested in the scheme, most of which were either lost during trading or pocketed and misused by Toynton and Gibson for their own personal gain. Lincolnshire Police said it was revealed Toynton spent £134,000 of investor’s money on luxury cars and holidays, while Gibson spent £400,000 on holidays and designer watches.
Low risk
Victims were led to believe that the scheme was legitimate and that their investments were safe. Toynton also assured victims that the scheme was low risk and that they could withdraw funds at any time.
Although some money was sent back to victims to add credibility to the scheme, the high returns they were initially promised never materialised.
The scheme eventually collapsed in the spring of 2019. However, Toynton “continued to perpetuate the scheme’s success until his and Gibson’s eventual arrest in July 2019”, the police said.
Toynton and Gibson both entered a not guilty plea to all charges when they appeared at Lincoln Magistrates’ Court on 9 December 2021.
Proceeds of Crime Act (POCA) confiscation proceedings will take place after sentencing.
‘Justice’
Phil Gidlow, who led the investigation for ECU, said: “This verdict is a culmination of years of hard work by our dedicated investigators in the Economic Crime Unit and only made possible due to the support of the victims.
“Fraud is a despicable crime, undermining our basic trust in others. As a result of this scam, the victims not only suffered huge financial losses, shattering their current financial position and plans for the future, but also caused some to have mental health and relationship problems.
“I hope this case reflects that we are determined to investigate and prosecute the perpetrators and that the victims feel some justice has been achieved.”
