There is some development in the story about the UK prosecution of Alex Hope, the mastermind of a fraudulent FX investment scheme, and his accomplice Raj Von Badlo (also known as Raj Shastri)…
Southwark Crown Court today ordered nearly £2.65 million ($3.86 million) to be returned to investors who had entrusted their money in a fraudulent collective scheme established and operated by Alex Hope. In addition, Mr Hope was made the subject of a Proceeds of Crime Act 2002 (POCA) confiscation order in the sum of £166,696.
He must pay the total sum within three months or face a further sentence of 20 months’ imprisonment in default. This penalty would be on top of the seven-year prison sentence imposed upon him in January 2015.
Given the sum that Raj Von Badlo should pay, £99,819, defrauded investors should expect to receive more than £2.9 million, which is equal to about 55% of the capital sums that are owed to them.
Mark Steward, the FCA’s Director of Enforcement and Market Oversight said:
“This is the largest sum returned to victims of crime following an FSA/FCA prosecution and is the result of quick action in the first instance to restrain the proceeds of Mr Hope’s offending. The FCA will continue to work hard to ensure wrongdoers are held to account not only for their wrongdoing but also for its consequences, especially to victims, to the fullest extent possible.”
Mr Hope lured investors by exaggerating his trading abilities and the returns he was making. He used doctored copies of statements from his trading account to mislead investors.
He used more than £2 million of investors’ money to fund his lavish lifestyle: he spent over £1 million in a casino, more than £200,000 on designer watches and shoes, more than £600,000 in bars and nightclubs in London, Miami and New York.
In April 2012, following information about Mr Hope operating an unauthorized investment scheme, the FCA’s predecessor – the Financial Services Authority (FSA), obtained a restraint order against Hope’s assets and arrested him in a joint operation with City of London Police.
You can view the full announcement about today’s court orders by clicking here.