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Accountant jailed for £2.3m Ponzi scheme

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6th Oct 2014
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A North Yorkshire accountant has been jailed for six years for one count of fraud and one of obtaining a money transfer by deception at Bradford Crown Court. 

Geoffrey Langdale was found guilty of running a £2.3m Ponzi scheme in which he tricked 28 investors to put money into over 11 years. 

The Crown Prosecution Service (CPS) said that the accountant "abused his position" of trust by enticing the victims, who were "reassured by the reputation of his longstanding accounting practice" to invest. 

Between 2002 and 2013, victims deposited between £10,000 and £260,000 into the scheme. 

According to the CPS he told them their funds would be invested into an umbrella account, which attracted high interest rates of a legitimate subsidiary of a well-known, high street bank. 

Langdale produced fraudulent documents and forged company logos to imply their investments were 'safe'. 

More than £1m of the £2.3m that was invested was used to keep his own companies afloat, including a chemical company that later failed. He received in total £2,333,487.57 in investments and only returned £1,150,840.59 to some of his victims.

Debra Chan, senior CPS prosecutor said: “As his debt spiralled out of control, he simply encouraged more and more people to invest in the scam.

"This conviction highlights Langham's dishonesty and blatant disregard for the welfare of his clients.”

Replies (4)

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7om
By Tom 7000
08th Oct 2014 12:51

out after 3 years?

clears 1.2m..thats £400k a year after tax.

I

 

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By vitali2712
08th Oct 2014 13:31

Sounds like he didn't bank

Sounds like he didn't have the full champagne and yachting lifestyle that Madoff et al enjoyed.

Pumped into failed companies, spiralling debt...sounds more like desperation from a bad business man...but then again perhaps a very elaborate hoax and cover story from a criminal genius. Either way, the money is either down the drain or in the Cayman Islands.

As the old saying goes to those who unfortuantely lost money;

If it's too good to be true then.......

 

 

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By [email protected]
10th Oct 2014 10:48

Tip of the iceberg?

These things often start with 'I'll borrow the money to fund a sure-fire investment and then pay it back with interest before anybody finds out.'  The 'sure-fire investment' turns out to be anything but, and the perpetrator becomes more and more reckless as desperation sets in.  Or does it sometimes work; is there an iceberg lurking below the waterline of those who got away with it?

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7om
By Tom 7000
10th Oct 2014 11:21

ahh yes...and..

Spreadbettings always a good way to start if you are considering following this route.

Not that I suggest you do...

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