Former Director of CWM Guilty of £70M Fraud!

In a court in London, a British foreign exchange company executive has been found guilty of participating in a Ponzi-style fraud scheme worth £70 million, in which he misappropriated investors' funds to support a luxurious lifestyle. The Crown Prosecution Services (CPS) revealed that the defendant, Constantinou, was convicted of fraud by false representation, fraudulent trading, and money laundering after he fled during the trial. The case involved Constantinou operating several investment schemes, including Capital World Markets (CWM) and CW Markets, between late 2013 and March 2015.

The prosecutor provided further details on the fraudulent scheme, explaining that Constantinou lured investors into the “Managed Accounts” program, promising them substantial returns on investment of 5% or 60% per annum through risk-free transactions in the foreign exchange (FX) markets. To participate, investors were required to contribute a minimum of £50,000 with the promise of receiving £100,000 in return. The scheme claimed to have access to preferential prices in forex trading, enabling such high returns. However, these claims were proven to be false.

According to the CPS, investigations revealed that CWM did not invest the investors' funds in the forex markets as claimed. Instead, the funds were used to pay returns to earlier investors, while the rest of the money was spent by Constantinou. It was discovered that he had utilized CWM's funds for personal expenses, including purchasing luxury cars, renting a mansion, private flights, lavish parties, and even spending £2.5 million on his wedding in Santorini, Greece. Additionally, Constantinou used a portion of the funds to maintain the reputation of CWM through sponsorship deals, aiming to attract more investments.

Constantinou had complete control over Capital World Markets and its affiliated entities, including their bank accounts. Through these entities, millions of pounds were transferred to him. As part of the investigation, authorities seized high-end vehicles, including a Range Rover and Ferrari, purchased by Constantinou.

The fraudulent activities of CWM came to light in March 2015 when the company was raided by the police, leading to the exposure of the scheme. Detective Inspector Nichola Meghji of the City of London Police described the investigation as lengthy and complex. Meghji characterized Constantinou as a career criminal motivated solely by personal gain, disregarding the well-being of others. Despite the evidence against him, Constantinou attempted to deceive the police and maintained his innocence throughout the investigation.

Due to Constantinou's decision to stop attending his trial, Judge Gregory Perrins announced that he would sentence him in absentia on June 9th, emphasizing the seriousness of his crimes and the impact on the victims.