Jailed: Dudley man defrauded victims out of £3.9 million in fake investment scheme
Two men have been jailed for their involvement in a fake investment scheme which defrauded victims out of almost £4 million.
Ross Gibson from Dudley and Christopher Toynton from Spalding in Lincolnshire tricked people into investing in their Ponzi scheme, otherwise known as a 'get rich quick' investment scam.
The pair ran the Lottery Syndicate Club Ltd in Spalding, which operated between 2017 and 2019, and had hundreds of members from across the country.
Victims were led to believe that the scheme was legitimate and their investments were safe. Toynton also assured victims that the scheme was low-risk and they could withdraw funds at any time.
Although some money was sent back to victims to add credibility to the scheme, the high returns initially promised never materialised.
Around £4 million was invested in the scheme, most of which was either lost during trading or pocketed and misused by Toynton and Gibson for their own personal gain.
Gibson spent £400,000 of investors' money on holidays and designer watches, while Toynton spent £134,000 on luxury cars and holidays.
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.
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.
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 two men were sentenced at Lincoln Crown Court last Friday after a seven-week trial, having entered a not guilty plea to all charges when they appeared at Lincoln Magistrates' Court in December 2021.
Christopher Toynton, aged 73 of Horseshoe Road, Spalding, 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. He has now been sentenced to 54 months in prison.
Ross Gibson, aged 27 of Eve Lane, Dudley, 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. He has been jailed for 53 months.
The case against another defendant, who was charged with carrying out regulated activities, was dropped.
Proceeds of Crime Act (POCA) confiscation proceedings will take place now that the pair have been sentenced.
PC 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.”.
