If it seems too good to be true, it probably is.

No matter how many times we hear this there are (apparently) people with more money than sense ready to take the risk; almost always with that risk ending up in tears.

Recently Alex Hope, 25, of London pleaded guilty to running a collective investment scheme without the proper authorisations. Between March 2011 and April 2012 his scheme fleeced investors out of 125,000 pound sterling ($A9.3 million).

Hope had told his marks he had trading strategy able to make 100 per cent returns on the foreign exchange market. Furthermore, he boasted, he could make these returns in only a few months!

In reality Hope was simply gambling with other people’s money.

He blew more than half a million pounds ($A930,000) of the 650,000 pounds ($A1.2 million) credited to his trading accounts.

Georgina Philippou, the Acting Director of Enforcement and Market Oversight at the Financial Conduct Authority said “He (Hope) promised fantastic returns. But, as is so often the case with unauthorised investment schemes, those who invested ended up with significant losses. The main beneficiary of the scheme was Hope himself.”

Image: www.news.com.au

Image: www.news.com.au

And benefit he did.

Hope came to the attention of authorities after a lavish party at a Liverpool nightclub. During the splurge he bought a 125,000 pound ($A230,000) bottle of champagne: a 30 litre bottle of Armand de Brignac Midas champagne.

Prosecutors further alleged he spent 2 million pounds ($A3.7 million) on himself, including 950,000 pounds ($A.8 million) gambling at plush casinos.

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.