Former football chairman found guilty of ?4m Ponzi fraud scheme
The former chairman of Spalding United has been found guilty[1] of a £4 million fraud scheme[2] which conned hundreds of victims. Christopher Toynton, 73, of Horseshoe Road, Spalding[3], was found guilty by a jury of four counts of fraud by false representation and five counts of fraud by abuse of position during the near seven-week trial.
He declined to give any evidence at Lincoln Crown Court and no other evidence was offered in his defence. Ross Gibson, 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.
Both men have been remanded into custody and will be sentenced on Friday, May 12. The case against another defendant, who was charged with carrying out regulated activities, was dropped.
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Detectives began investigating in the spring of 2019 following complaints of suspected fraud connected to the Lottery Syndicate Club Ltd in Spalding. This turned out to be what’s known as a Ponzi scheme, a ‘get rich quick’ investment scam that pays existing or earlier investors with funds collected from new investors.
Toynton acted as the scheme’s sole director, and was responsible for all administration, financial transactions and contact with investors. The scheme had several hundred members from across the country and around £4 million was invested in it.
Most of the money was either lost during trading or pocketed and misused by Toynton and Gibson, who acted as an unauthorised trader, for their own personal gain. It was revealed Toynton spent £134,000 of investor’s money on luxury cars and holidays, while Gibson spent £400,000 on holidays and designer watches.
Police say victims were led to believe the scheme was legitimate and their investments were safe. Toynton also assured victims the scheme was low risk and they could withdraw funds at any time.
The scheme eventually collapsed in the spring of 2019 but Toynton continued to perpetuate the scheme’s success until his and Gibson’s eventual arrest in July that year. 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.”
Lincolnshire Police has highlighted four ways to spot the signs of a Ponzi scheme:
- You are promised high returns on your investment with little to no risk. Every investment carries some degree of risk, so be cautious when someone guarantees returns on investment opportunities.
- You have difficulty receiving payments or can’t cash out. Fraudsters will often offer higher returns to persuade the investor from cashing in on their investments.
- Fraudsters will use hard-sell techniques and will try to pressure you into making rushed decisions, giving you no time to consider the nature of the investment.
- You are encouraged to keep your investment secret to ensure you received maximum returns. This allows the fraudsters to hide the real nature of their scheme.