The Financial Conduct Authority (FCA) has secured a Confiscation Order of almost £6 million against convicted investment fraudster, Guy Flintham.
In May 2024, Flintham was given a six-year prison sentence for defrauding investors of £19 million, having pleaded guilty to fraud by false representation.
According to the FCA, Flintham stole from 240 investors between January 2016 and November 2021 after persuading them to invest in a scheme operated by him.
He made fraudulent claims to those who trusted him, including how the scheme was operated and the profits they were making, and falsified documents such as trading statements to support his claims. Of the £19 million, £10 million was repaid as profits and Flintham used his ill-gotten gains to maintain an “extravagant lifestyle,” which included purchasing cars, personalised number plates, jewellery, and designer goods.
The sums recovered from the Confiscation Order will be distributed to the victims of his crimes. If the Order is not satisfied within three months, Flintham will serve an additional two years in jail in addition to the six years he is already serving.
The three-month period can be extended if Flintham can show he is making reasonable steps to satisfy the order
Helen Gregory, Forensic Director at Milsted Langdon, said: “Frauds of this scale and complexity can take years to uncover and longer still to reach resolution via the courts.
“The size of the Confiscation Order is significant when taken with the funds paid to victims as “profits” and it will be important to see what the FCA is able to recover. It is unusual for confiscation orders to be paid in full due to monies having been dissipated by the criminal and, unfortunately, the victims will still be out of pocket.
“The threat of further jail time can help focus the minds of criminals to pay their order. Forensic accountants can provide calculations of the benefit received by the criminal and in assessing the available assets which could be used to satisfy the confiscation order.”
Sources: FT Adviser