Three fraudsters who defrauded over 3,000 people, primarily pensioners, out of approximately £70 million through a tree-planting Ponzi scheme have been sentenced to a combined 15 years and nine months in prison. Matthew Pickard, 58, Stephen Greenaway, 48, and Paul Laver, 47, admitted to fraudulent trading after a Serious Fraud Office (SFO) investigation uncovered their scheme, which ran for seven years.
The trio operated a Bournemouth-based call center, convincing individuals to withdraw funds from their pensions and invest them in what they claimed was an ethical tree-planting project in Costa Rica, promising substantial returns. However, investigators found that while some funds were used to plant trees, nothing was allocated for their maintenance or harvesting, rendering the promised returns impossible.
Instead of reinvesting the majority of the money, the fraudsters spent an estimated £14 million on lavish lifestyles. This included purchasing luxury properties in areas like Sandbanks, taking five-star holidays across Asia, Central America, and Europe, acquiring a yacht, and amassing a collection of high-end sports cars, including Maseratis, Ferraris, and Porsches. These vehicles were reportedly hidden from potential investors who visited the office.
His Honour Judge Alexander Milne KC stated during sentencing at Southwark Crown Court that the defendants treated investors' money as personal funds rather than working capital. "The funds removed were spent as each of you had won the lottery," the judge remarked, noting that the luxury vehicles had to be concealed from visiting investors, making it clear that only those running the scheme were benefiting.
Graham McNulty, SFO director, commented that the former directors preyed on people's good intentions to support a "green" investment, stealing hard-earned life savings and pensions. He added that the SFO's investigation exposed the fraudulent scheme and secured guilty pleas, representing an important step towards justice for the victims. Many victims reportedly had to return to work after losing their life savings.