Financial Advisor Accused of Defrauding Pensioners of Millions in Life Savings
A financial advisor described as "greedy" allegedly swindled millions of pounds from the life savings of pensioners because he was "sick of being poor," a court has heard. Raymond Simpson, 78, is accused of defrauding elderly homeowners to purchase land in Spain for property developments between January 2014 and April 2018.
Prosecutors Detail Alleged Fraud Scheme
Jurors at Southwark Crown Court were informed that pensioners believed Simpson and his business partner Steve Long, 59, would protect their savings from care home fees and inheritance tax. However, prosecutors argue that £11.5 million of their money was lost propping up Long's and Simpson’s failing business interests, funding "too good to be true" investments, and purchasing land.
The investments, known as "private placement programs," were described by prosecutors as "gambling" with other people’s money by "putting everything on black." Charlene Sumnall, prosecuting, stated: "This is fundamentally a case about greed. Mr Long and Mr Simpson sought to enrich themselves using money that was not theirs."
She added: "As Mr Simpson was to put in a text to Mr Long on 27 November 2016: 'I am sick of being poor.' Sometimes in a fraud case you lose sight of the people who have suffered. It is easy to get bogged down in technical detail and to feel at times overwhelmed by that detail. But the money that was taken in this case belongs to real people."
Victims Lured by Promises of Protection
Victims of the alleged fraud were reportedly lured in by Long, who advertised his company called Universal on letterbox leaflets offering seminars. Attendees received glossy brochures explaining how Long could protect their savings from "care homes fees, inheritance tax and ending up in the hands of someone they did not know."
The brochure claimed: "The wealthy learned many years ago that if they wanted to protect their bloodline, they need to put the correct protection in place. Over the centuries they have written the laws that guarantee their wealth can be passed down through the generations safe from divorce, remarriage, illness and tax. These same laws can protect you and your family."
Financial Details and Scheme Collapse
According to Simpson’s own banking details with Barclays, read out at trial, while working with Long, he had his own trust fund to protect his money and declared an annual salary of £270,000. In 2018, Universal collapsed, and accountants discovered operating losses of nearly £6 million over six years when reviewing financial records at the company offices in Ipswich.
Jurors were told that Long admitted using client money to pay staff wages in an example of "robbing Peter to pay Paul" or a classic Ponzi scheme fraud. Miss Sumnall further explained: "Mr Simpson, who knew the money was coming from trust funds, encouraged Steven Long to use the money for a series of investments in which Mr Simpson expected to make a personal financial gain. He introduced Steven Long to the bank trades and the people running them. The Spanish land was purchased in his name."
Ongoing Trial and Admissions
Long has admitted two counts of fraud relating to the £11.5 million this year, but Simpson, who was not present on the first day of his trial, denies the same fraud allegations. The trial is expected to last four weeks and is currently ongoing, with prosecutors emphasizing the significant impact on victims.
Miss Sumnall concluded: "It is their money that Mr Simpson and Mr Long were gambling with. It is their money that the pair put at risk to enrich themselves. They are not insignificant sums of money. In fact, £10,000s and in some cases £100,000s. These were people’s inheritances and life savings gone because of the greed of Mr Long and Mr Simpson."
