Man Who Ran Britain’s Biggest Ponzi Scheme Jailed for 14 Years
A man who admitted running the largest Ponzi scheme in British history, defrauding investors of more than 115 million pounds ($182 million), was sentenced to 14 years and six months in prison, prosecutors said.
Kautilya Nandan Pruthi pleaded guilty to defrauding around 800 investors over a three-year period until November 2008.
His associates, John Anderson and Kenneth Peacock, were today found guilty for their part in the fraud and each jailed for 18 months, the Press Association reported.
The trio defrauded investors by offering monthly returns of as much as 13 percent. The scheme was marketed as a fund investing in high-interest loans to distressed trading companies involved in importing and exporting goods.
Pruthi spent the proceeds on London property, a Jaguar XKR, three Bentleys, two Ferraris, a Lamborghini, two Mercedes, a Rolls Royce, a Volkswagen and a motorcycle, according to the City of London Police, which investigated the case after it was referred to them by the Financial Services Authority in 2009.
Pruthi, Peacock and Anderson were ordered to pay the FSA 115 million pounds in 2010 for unlawfully accepting deposits while operating as Business Consulting International. The regulator said it would return any money it receives to investors.
Pruthi, who used helicopters to travel to meetings with investors, also owned a private jet that crashed in 2008, killing all five passengers on board, police said. He was previously jailed in the U.S. on fraud charges before being deported to India. Pruthi then moved to the U.K. from India, police said.
The prosecution service had no information on the men’s lawyers to contact for comment on the verdict.
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