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 brought by the UK Financial Conduct Authority (FCA).
Between January 2016 and November 2021, Mr Flintham, based in Blackburn, Lancashire, defrauded more than 240 investors by making false representations to persuade them to invest approximately £19m in an investment scheme operated by him.
Among these representations was the claim that he was a successful trader: in reality he was not.
He lied about how the scheme was operated and the profits that he was making for his investors. He sent them falsified trading statements which showed healthy returns. Any money that was paid out to them as returns was money received from other investors – or their own investment paid back to them.
Only £1.14m was ever placed into trading accounts by Mr Flintham, with a further £10m paid back to investors as ‘profits’ or withdrawals of capital. Mr Flintham spent substantial sums on an extravagant lifestyle, including more than £1m on vehicles, personalised number plates, jewellery and designer goods.
In sentencing, His Honour Judge Milne, remarked:
‘I read the victim impact statements: they are heartbreaking… over and over again I read of the devastation left in the wake of [the fraud you perpetrated]. People were devastated by what has happened; people’s lives have been irrevocably damaged.’
The FCA has commenced confiscation proceedings against Mr Flintham, with a hearing listed for 18 July.
The FCA took proactive steps using their powers under the Proceeds of Crime Act 2002 to secure available assets at an early stage in the investigation to make them available for confiscation.
A further count of carrying on regulated activity without authorisation or exemption, contrary to the Financial Services and Markets Act 2000, was ordered to lie on file.
Fraud by false representation is contrary to section 1 of the Fraud Act 2006. It is punishable by a fine and/or up to 10 years’ imprisonment.
