An 85-year-old former Nasa scientist has admitted defrauding investors and using some of the proceeds to buy a house.
John Burford generated more than £1 million from 100 investors through his illegal practices, but only £760,000 was ever traded – much of which was lost.
Substantial amounts of the money investors sent him was actually used to buy his own home, a court heard.
Burford appeared at Westminster Magistrates’ Court on Friday wearing a brown jacket, grey trousers and brown boots.
He admitted fraud by false representation and carrying on a regulated activity when not authorised between January 2020 and December 2023.
He has a PhD in physics from the University of Toronto and worked for Nasa in its manned Mars exploration team based in Washington DC, before moving into finance, his biography on publisher Pan Macmillan’s website says.
Burford repeatedly lied to investors about how much the funds were worth and hid the full extent of the losses he had incurred while trading.
Prosecutor Tom Godfrey told the court Burford set up a scheme which sent subscribers daily email alerts with investment opportunities.
He traded £760,000 worth of the money generated, but “lost significant sums”, Mr Godfrey said.
“He used substantial amounts of the money received to buy his own home,” he added.
The former scientist, who now lives in Mansfield, Nottinghamshire, was the sole director of Financial Trading Strategies Ltd, but was not authorised to trade in the UK, the court heard.
Carrying out unauthorised business is an offence punishable by a fine and/or up to two years’ imprisonment.
Burford, who has no previous convictions, will be sentenced at Southwark Crown Court at a later date.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Mr Burford fleeced unwitting investors in order to enrich his life – not theirs.
“Identifying and disrupting criminals who abuse people’s trust for their own gain, is a top priority for the FCA.”
