Pair face £35m fraud charges after conning elderly Britons
Friday, 14 Mar 2008 09:00
Police in the US arrested two people in Florida over the fraud
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A father and daughter from Florida have been accused of conning 15,000 mostly elderly British citizens out of more than $70 million (£34 million).
It is alleged that the pair sold worthless shares to people, in the so-called "boiler room" fraud scheme.
Paul Gunter, 58, and his 25-year-old daughter, Zibiah, were arrested by federal agents in Florida yesterday and have since been charged with multiple counts of money laundering and fraud.
US authorities claim that people were tricked into investing money into shares of over 50 dormant companies in the scam since 2005.
Robert Weber, the special agent in charge of the investigation for the US immigration and customs enforcement (ICE) agency said: "These two criminals demonstrated a callous disregard for the hard-earned money of individuals who thought that they were legitimately investing in their futures. They will now have to account for their actions before a court of law.
"ICE will continue working with its law enforcement partners here and abroad to hold criminals involved in stock fraud accountable for their actions."
Head of the money laundering unit at the City of London police, Detective Chief Inspector Robert Wishart, said: "This part of an ongoing investigation into a mass marketing crime scam known as boiler room fraud.
"Thousands of British people have fallen victim to this crime – in this inquiry alone, we estimate that around 15,000 mostly elderly people have lost money.
The investigation, Det Ch Insp Wishart said, was a "fine example of how international collaboration can bring to justice those who choose to perpetrate these crimes."
"Criminals may think that because they are laundering money through a number of foreign jurisdictions, they will not be caught. This action demonstrates how effective the law enforcement community can be in ensuring there is no hiding place for criminal or their money," he concluded.