Three former directors of Ethical Forestry Limited plead guilty
following a Serious Fraud Office (SFO) investigation into a £70
million investment scheme fraud.
Matthew Pickard, 56, Stephen Greenaway, 47, and Paul Laver,
47 from Bournemouth have been convicted at
Southwark Crown Court today of fraudulent trading,
ahead of an expected trial next month.
An SFO investigation found that the directors defrauded
approximately 3,000 UK investors over seven years. Operating from
a Bournemouth call centre, employees of Ethical Forestry Limited
cold-called members of the public offering pension reviews. They
used false company names, including Richmond Solutions and the
Pension Report Service, without disclosing their true
employer.
Caller handlers encouraged people to withdraw
their savings from legitimate pension schemes and invest funds in
tree planting in Costa Rica.
Whilst trees were planted in Costa Rica, no funds were
set aside
to maintain the trees or undertake commercial
harvest, so investors' money could never generate
the promised returns from the harvest of
trees.
Funds were instead used to support the defendants'
lifestyles. Stephen Greenaway purchased a £1.9
million home in Sandbanks, Poole, while Matthew Pickard bought a
£4.3 million property.
The defendants also amassed a collection of high-end sports cars
including a Maserati Nero Granturismo, Ferrari 458 Italia,
McLaren MP4-12C, Audi R8 V10 Spyder, and Porsche 911 Turbo S and
enjoyed luxury holidays in Italy, Mexico, France, Gran Canaria,
the Maldives, and Switzerland.
£2.77 million of investor monies were also
diverted and used to administer a tax avoidance scheme for the
directors' own benefit.
Emma Luxton, Director of Operations at the
Serious Fraud Office (SFO), said:
These former directors preyed on people's good intentions to
support ‘green' investment, stealing £70 million from hard-earned
life savings and pensions.
Our complex investigation exposed this fraudulent scheme
and the strength of our evidence led to guilty pleas. This
is an important step towards justice and
compensation for the 3,000 victims.
Solicitor General MP, said:
Fraud is a devastating crime that destroys lives and strips
people of their hard-earned savings. Those who exploit the appeal
of ethical investments to defraud from
savers aren't simply committing financial crime – they
are betraying the trust of thousands of people planning for their
futures.
As Solicitor General, I am committed to supporting the Serious
Fraud Office in tackling investment fraud and holding
perpetrators to account. This conviction sends a clear message:
the authorities will pursue those who prey on the public,
regardless of how complex their schemes may be.
The defendants are expected to be sentenced in May.
