Advance fee fraud Edward Davenport (fraudster)

1 advance fee fraud

1.1 trial , conviction
1.2 reactions
1.3 confiscation proceedings

advance fee fraud

in late 2005 davenport acquired existing shelf company , renamed gresham ltd – name similar to, wholly unconnected with, well-known wealth management company gresham financial – used vehicle advance fee frauds. gresham falsely presented long-established, wealthy , prestigious firm prospectus claiming had been involved in commercial loans market since 1958. company promoted through glossy brochures , advertisements in financial times.

between 2005 , 2009, davenport , several co-conspirators promised finance on fifty commercial loans, targeting construction projects in several countries. businesses asked pay large sums deposits , verification fees , loan guarantees , due diligence . company s records noted payments of £4.5 million prospective borrowers. ten of largest prospects promised loans of £500 million but, rest, received nothing. in 1 case reported financial times, fee of €830,000 charged security deposit . value of fraud said prosecutors @ least £12 million. victims included elizabeth emanuel, lost savings after being promised £1 million loan. indian businessman paid £285,000 finance €183 million loan suffered crippling losses of £825,000 after no money arrived, leaving him owing €11 million.

in october 2009 gresham liquidated after companies secretly controlled davenport petitioned have wound up. carried on advance fee fraud through newly acquired shelf company, cutting , company (investments) ltd, had been established in 1930 , had been dormant since 2000. cutting & co. portrayed public restructuring expert. davenport sought keep distance fraud using aliases such james stewart or james stuart . however, exposed when fire regulators recognised james stewart davenport photographs on own website , informed serious fraud office (sfo).

two months later, @ start of december 2009, sfo investigators , police raided 19 commercial , residential properties in london, surrey, cheshire , derbyshire , arrested 6 people. davenport charged conspiracy obtain money deception, conspiracy commit fraud false representation , money laundering. accused of carrying out price ramping fraud on £2.4 million property in central london artificially increase price @ auction. property, office building @ 80 paul street in city of london, said have been sold £700,000 more market value due false claim made lease supposedly guaranteed gresham ltd. sfo said investigating allegations of rent fraud involving gresham.

also accused david mchugh, accountant; david horsfall, davenport s solicitor, peter riley, gresham director; richard kirkup (also known richard stephens), had been convicted in 2004 of previous advance fee fraud; , borge andersen, danish national worked gresham s senior loans officer. davenport , riley remanded in custody wandsworth prison while others released either on bail or without charges.

trial , conviction

in june 2011, sfo brought 11 test cases westminster magistrates court, though prosecutors said these represented fraction of true scale of fraud, there @ least 51 victims in uk, austria , india. davenport charged separate £8 million fraud , money laundering scam. three-month trial concluded in september 2011 davenport, riley , andersen each convicted on single count of fraud. other charges against davenport left lie on file. horsfall, mchugh , kirkup pleaded guilty.

davenport found ringmaster , guiding mind behind fraud, while riley described accomplished conman , skilful liar strung along borrowers on huge scale bare-faced lies . both men sentenced 7 years , 8 months imprisonment, banned becoming company directors ten years , ordered pay compensation , legal costs. andersen, described being perceived articulate , plausible of fraudsters , sentenced 39 months. on 11 november 2011, horsfall sentenced 17 months fraud false representation, while mchugh , kirkup received 4 years , 2 months , 3 years , 8 months respectively conspiracy defraud. mchugh revealed have been convicted of 40 offences since 2000. had falsely claimed lawyer , accountant , produced false company accounts gresham, while kirkup posed surveyor carry out expensive assessment visits sites of planned building projects. horsfall admitted writing letter falsified how money gresham had.

reporting restrictions imposed @ start of trial lifted in october 2011 after horsfall, final defendant, pleaded guilty. according gresham s accounts, andersen received £159,564, riley £695,407, , davenport £773,000, further £349,025 has gone missing , cannot traced. however, sfo investigators reported have found davenport has few assets in name , went great lengths distance himself fraud; judge testar commented, did not leave many footprints in snow himself.

in november karen todner challenged order of judge testar impose compensation order of £1.9m in addition £12m confiscation order imposed on davenport. court of appeal accepted representations , davenport s confiscation order has been reduced £1.9m. both orders have been settled , court service returned davenport s money forthwith. davenport subsequently released prison on compassionate grounds, due serious illness.

reactions

sentencing davenport, riley , andersen, judge peter testar said: professional, sophisticated fraud had grave impact on victims, decent honest people. commented: stress , anxiety these people suffered enormous , lives have been grievously affected fraud. of them never recover ... professional , sophisticated fraud had great impact on victims , each of these 2 defendants [davenport , riley] had significant role play. judge david higgins, sentenced remaining defendants, said: not 1 penny ever produced conspirators, put fees etc in pockets. harm done victims substantial, including bankruptcy, unemployment , @ least 1 personal breakdown. director of serious fraud office, richard alderman, hailed convictions major success sfo , commented: proactive investigation stopped sophisticated criminal enterprise in tracks. time taken commencement of investigation trial little on fifteen months , demonstrates sfo s commitment reducing time taken bring cases before crown court.

following conviction, davenport issued statement expressing shock , dismay @ verdict. said: matter have denied throughout , have lodged appeal against conviction @ royal courts of justice (ref 201103357d3); detailed grounds of appeal have been drafted , filed legal team... continue make every effort prove innocence , forward case being considered court of appeal , being able clear name.

following release prison in 2014, davenports positive outlook has been coloured rare victory against serious fraud office – appeal against confiscation order forced pay after being convicted of fraud in 2011. after release, davenport reportedly became involved in property deals chinese business partner , started looking buy film studio.

confiscation proceedings

confiscation proceedings against davenport began on 19 june 2013. according prosecutors, had made £34.5 million through fraud schemes, though davenport has argued should repay £8 million. alleged largest single element purchase of 33 portland place building, prosecution has said obtained through fraud.

in october 2015 davenport returned court of appeal state had been victim of “double counting” sfo in confiscation , compensation order.

the sfo said had recovered more £13million davenport satisfy orders, davenport s solicitor karen todner argued had paid in confiscation , compensation. todner told court of appeal although davenport might have benefited £12 million fraud, had been made repay £14 million. sfo lawyers disagreed sentiment , said davenport s appeals should dismissed court of appeal subsequently accepted todner s appeal lodged on davenport s behalf , order set aside.