Two guilty over 'Ponzi' scheme
Monday 05 March 2012
Two men were convicted today in connection with Britain's biggest ever "Ponzi" scheme.
John Anderson, 46, and Kenneth Peacock, 43, were both found guilty of one count each of unauthorised regulated activity linked to a massive fraud run by Kautilya Nandan Pruthi.
Pruthi's victims were persuaded to invest in an apparently high-yield fund but the money was siphoned off to fuel his lavish lifestyle.
Trading as Business Consulting International, Pruthi ran the business fraudulently between 2005 and 2008, obtaining £38 million from the swindle, prosecutors said.
The scam was said to be the biggest Ponzi fraud ever perpetrated in the UK.
If every victim was paid back what they were due, it would amount to a sum of more than £100 million.
A jury of six men and six women at London's Southwark Crown Court convicted Anderson and Peacock today of the unauthorised regulated activity charges but cleared them of one count each of fraud.
The jury will continue to deliberate on whether the men are guilty of recklessly making a misleading, false or deceptive promise when they return to court tomorrow.
Judge Michael Gledhill QC today told Pruthi, 41, who has already admitted his role in the fraud, that he would be sentenced on Wednesday.
Ponzi schemes are a type of investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
- 1 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats