Press release
Prison for directors behind £70 million investment fraud
Former directors sentenced for defrauding 3,000 people.
Today, Matthew Pickard, 56, Stephen Greenaway, 47 and Paul Laver, 47 from Bournemouth have been sentenced to a combined 15 years and nine months in prison for orchestrating a seven-year £70 million investment fraud duping more than 3,000 people – many of them pensioners – out of their savings.
Matthew Pickard was sentenced to six years in prison for fraudulent trading. Stephen Greenaway was sentenced to five years and three months. Paul Laver was sentenced to four years and six months in prison. All three were also disqualified from acting as directors for ten years.
The Serious…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.