Legal News

A financial adviser who conned former clients and unsuspecting friends out of £224,000 by asking them to invest in a bogus get rich quick scheme has had his four-year jail term upheld by the Appeal Court in London.

Judge Elgan Edwards QC said that 57-year-old Keith Walsh – from Abbotswood Close in Redditch, West Midlands – was lucky not to have received a longer jail term.

The financial adviser persuaded his business and personal contacts to invest in a scheme that never existed – and passed the money from each investor in turn to convince them their investment was yielding high returns.

Many of those who placed their trust in Mr Walsh were not wealthy, but handed over their savings believing he would safeguard their interests and the original investment would grow. Walsh accepted payments of between £2,000 and £30,000 from the investors.

The non-existent investment scheme ran for around eight years between 2002 and 2009, with Mr Walsh accepting investments from newcomers to the scheme and passing these to his previous investors to make it appear their investments were yielding healthy profits.

Walsh targeted 11 people he had previous dealings with in his capacity as a broker and mortgage adviser, although some he duped had known him for 30 years and considered him a friend.

The court heard that Walsh was under financial pressure himself when he devised the bogus investment scheme – and he returned around £76,000 to those who invested. However, many of those who trusted him with their savings were relying on the high returns they were expecting from the scheme for future support.

Walsh pleaded guilty to nine counts of obtaining money by deception and eight charges of fraud when he appeared at Worcester Crown Court in April 2013. He challenged the four-year sentence handed down, but last week Appeal Court judges Lord Edwards, Lord Justice Davis and Mr Justice Nicol ruled the four-year jail term “…a perfectly proper sentence, neither manifestly excessive nor wrong in principle”.

Duncan Lewis Fraud Solicitors

Bogus investment schemes which repay original investors using investments from newcomers to the scheme are known as Ponzi schemes. The schemes can run for years until one investor asks for their investment back – at which point the scheme either collapses or the fraud becomes evident.
This is just one type of financial fraud which investors need to be aware of.

Duncan Lewis fraud solicitors can advise companies and individuals on financial fraud and how to avoid or deal with it.

Companies which suspect an employee may be committing fraud are advised to take legal advice before confronting the employee.

Duncan Lewis fraud solicitors can also advise individuals who fear they may be victims of financial fraud – or who may have been charged or suspect they will be charged with fraud, or questioned under caution.

Types of fraud Duncan Lewis fraud lawyers can advise on include:

• Conspiracy to Defraud
• Insurance Fraud
• Advance Fee Fraud
• HM Customs & Revenue Fraud
• Internet Fraud
• False Accounting
• Benefit Fraud
• Fraud & Money Laundering
• Mortgage Fraud
• Passport and ID Fraud
• Council Tax Fraud.

For expert legal advice on fraud contact Duncan Lewis fraud lawyers on 020 7923 4020.