The boss of two scam investment firms siphoned off £6 million from over 150 victims, including some as old as 92 and several who died before seeing him jailed.
David Clarkson lured investors with a fraudulent corporate bond promising seemingly unbeatable fixed interest returns of seven per cent.
City of London Police launched a money laundering investigation in August 2016 after receiving information about large and unusual payments made to Sable Intl Ltd, which was newly incorporated.
Detectives discovered Clarkson, 70, was the driving force behind a huge Ponzi-style fraud.
He and three accomplices - solicitor Mark Fallon, 60, Anthony Flaton, 39, and Porsche-driving Lillian Milner, 57 - were linked to an earlier bogus scheme, Equitable Law Capital.
Ironically, that company boasted about making money processing claims of people who’d been mis-sold investments.
Investors – including five from Hendon, Blackheath, Charlton, Ilford and Willesden in London – were unaware their life savings had been used to fund the criminals’ lavish lifestyles.
One elderly woman, who lost £80,000, died in June 2015 and her relatives couldn’t get her cash back.
Several others passed away during the nine-year investigation into both companies’ high pressure sales which “hounded” people into parting with money. The largest individual loss was £250,000.
Clarkson used a third firm based in the Seychelles and Switzerland to launder proceeds. He lives in a £300,000 semi-detached house with a Mercedes on the drive.
Commissions were also paid to an offshore account in Mauritius for the benefit of Flaton.
Both ELC and Sable entered administration and voluntary liquidation at the end of 2016 owing more than £4m.
Their convictions came as His Majesty’s Inspectorate of Constabulary graded City of London Police “outstanding” for how it records crime, as well as “good” for both investigating crime and responding to the public.
The watchdog recognised how well the force supports rape victims and achieves more than double the national average of positive outcomes for violence against women and girls.
At Southwark Crown Court Clarkson, of Livesay Branch Road, Blackburn, was sentenced to seven years and six months having pleaded guilty to conspiracy to defraud, money laundering and perverting the course of justice.
For their parts: Fallon, of Haslingden Old Road, Rossendale, got four years, six months; Flaton, of Beauclerk Green, Winchfield, Hampshire, five years; Milner, of Sliven Clod Road, Rossendale, Lancashire, five years and six months.
Milner’s husband, Graham, 55, was jailed for three years, six months.
Clarkson’s son Paul, 46, of Shawbridge Street, Clitheroe, received 20 months, suspended for two years, with 180 hours of unpaid work.
Police and the banking sector returned over £2m of stolen money.
In a heartbreaking impact statement, one victim said: “I have found it increasingly harder to face the day and rarely have a good night’s sleep with difficulty finding the motivation to get on with the daily tasks at hand.
“I am a very keen and competitive sportsman and my ability and drive to participate has gone downhill since these events started leaving an ever present feeling of reluctance to fully pursue any leisure activities.
“Dealing with this case has been very overwhelming and mentally consuming often leaving me feeling very depressed with a general loss of faith in humanity.”
Detective Constable Jay Smith, from City of London Police’s Specialist Operations team, said: “This was a complex, years-long investigation involving multiple agencies and international support. It’s thanks to persistent and diligent work that we achieved this outcome.
“These fraudsters stole life savings from hundreds, abusing their trusted positions out of pure greed. Clarkson, in particular, showed no remorse - cloning a regulated insurer and impersonating the broker to trick victims and later forging medical documents to avoid trial. Faced with overwhelming evidence, he eventually pleaded guilty.
“I thank the victims and their families for their strength and cooperation, and we remember those who sadly passed during the process. I hope this result brings some comfort.
“We remain committed to pursuing those who abuse trust and exploit the vulnerable. Let this case be a warning: you will be found, prosecuted and convicted.”
Steve Smart, a joint executive director at the Financial Conduct Authority, added: “We are committed to working with the police to fight financial crime, particularly where fraudsters seek to falsely exploit links to FCA-regulated companies to deceive investors.”
Commissioner Pete O’Doherty said HMICFRS’s PEEL inspection released on Thursday “demonstrates the hard work our officers and police staff are doing to keep people safe and put victims at the heart of everything we do”.
He added: “I am especially proud of our ‘outstanding’ grade for recording crime, as well as being recognised for how we investigate crime and respond to the public.
“We are not at all complacent, but this is a good outcome, reflecting our new Policing Plan priorities for the next three years, and it shows how we really are going the extra mile to deliver the best service possible to the City of London, and beyond.”
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