Following a hearing at Southwark Crown Court, Guy Flintham, 46, was today sentenced to 6 years for fraud.
On 19 February 2024, Mr Flintham pleaded guilty to fraud by false representation following a prosecution by the UK’s Financial Conduct Authority (FCA).
Between January 2016 and November 2021, Mr Flintham, based in Blackburn, Lancashire, defrauded more than 240 investors by making false statements to get them to invest around £19 million in an investment scheme he managed.
Among these performances was the claim that he was a successful trader: in fact he was not.
He lied about how the scheme worked and the profits he was making for his investors. He sent them falsified trading statements showing healthy returns. Any money paid to them as refunds was money received from other investors – or their own investment returned to them.
Only £1.14m was ever placed into trading accounts by Mr Flintham, with a further £10m returned to investors as ‘profits’ or withdrawals of funds. Mr Flintham spent significant sums on an extravagant lifestyle, including more than £1million on vehicles, personalized number plates, jewelery and designer goods.
In sentencing, the Honorable Mr. Justice Milne, observed:
“I have read the victim impact statements: they are heartbreaking…time and time again I have read of the devastation left in its wake [the fraud you perpetrated]. People were devastated by what happened. people’s lives have been irreparably damaged.’
The FCA has launched confiscation proceedings against Mr Flintham, with a hearing scheduled for July 18.
The FCA took proactive measures using its powers under the Proceeds of Crime Act 2002 to secure available assets at an early stage of an investigation to make them available for confiscation.
Another charge of carrying on a regulated activity without authorization or exemption contrary to the Financial Services and Markets Act 2000 was ordered to be dropped.
Fraud by false representation is contrary to section 1 of the Fraud Act 2006. It is punishable by a fine and/or imprisonment for up to 10 years.