Apr 24, 2014 00:13
A young trader used investorsâ cash as his âpersonal piggy-bankâ and blew more than £500,000 in exclusive nightclubs, a court heard yesterday.
The Daily Mirror reports that financial wizard Alex Hope, 25, allegedly masterminded a £5.6m Ponzi fraud to fund his hedonistic lifestyle and love of gambling.
A former Wembley stadium catering manager, he reinvented himself as a currency markets expert and claimed to have spent £125,000 on one bottle of Ace of Spades champagne.
After suspicions around his Forex fund grew, City of London police officers raided Hopeâs flat in east Londonâs Docklands and arrested him, Southwark Crown Court heard.
Prosecutor Sarah Clarke said: âThis was not a successful trading scheme. In fact, in truth this was not a real trading scheme at all...it was a classic Ponzi fraud.
âHe used their [investorsâ] funds in fact as his personal piggy-bank. A massive amount was spend on himself.
âPersonal expenditure was in the region of £2m in that period. £950,000 was paid to a casino, £512,000-odd spent in nightclubs and bars.
âThe investors who put the money in good faith had no idea this was happening.â
When Hope did play the currency markets , he sustained âheavy lossesâ, Miss Clarke said.
She said he would use new investorsâ funds to pay off those who wanted to leave the scheme, in the classic Ponzi fashion.
Hope denies fraud.
http://hereisthecity.com/en-gb/2014...sed-investors-cash-to-fund-clubbing-and-gamb/
Another "trading wizard" uncovered.
A young trader used investorsâ cash as his âpersonal piggy-bankâ and blew more than £500,000 in exclusive nightclubs, a court heard yesterday.
The Daily Mirror reports that financial wizard Alex Hope, 25, allegedly masterminded a £5.6m Ponzi fraud to fund his hedonistic lifestyle and love of gambling.
A former Wembley stadium catering manager, he reinvented himself as a currency markets expert and claimed to have spent £125,000 on one bottle of Ace of Spades champagne.
After suspicions around his Forex fund grew, City of London police officers raided Hopeâs flat in east Londonâs Docklands and arrested him, Southwark Crown Court heard.
Prosecutor Sarah Clarke said: âThis was not a successful trading scheme. In fact, in truth this was not a real trading scheme at all...it was a classic Ponzi fraud.
âHe used their [investorsâ] funds in fact as his personal piggy-bank. A massive amount was spend on himself.
âPersonal expenditure was in the region of £2m in that period. £950,000 was paid to a casino, £512,000-odd spent in nightclubs and bars.
âThe investors who put the money in good faith had no idea this was happening.â
When Hope did play the currency markets , he sustained âheavy lossesâ, Miss Clarke said.
She said he would use new investorsâ funds to pay off those who wanted to leave the scheme, in the classic Ponzi fashion.
Hope denies fraud.
http://hereisthecity.com/en-gb/2014...sed-investors-cash-to-fund-clubbing-and-gamb/
Another "trading wizard" uncovered.
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