Craig Clark acquitted of a 7 millionpound boiler room fraud
Our client was acquitted by the Jury at IpswitchCrown Court of his involvement in an allegedinternational boiler room frau...
David Arthur Vidgeon(DOB 02/01/1980), a UKnational resident in Spain was sentenced to seven yearsimprisonment.Rahul Natwar...
SFO Director Richard Alderman said: "A boiler room isa predatory and orchestrated attack on private investorsso its very s...
OutlineDavid Vidgeon and Rahul Patel conspired to defraud investors, many ofwhom were retired and elderly, by high pressur...
The companies whose shares were sold were worthless. Their function inthis conspiracy was as vehicles used by Vidgeon, Pat...
Another company, the Osborn Group, trading as "TheCrowd Went Wild", purported to market sportingmemorabilia on the interne...
The boiler room is a recognised engine of fraud. Boiler rooms areessentially call centres, concerned in the selling of sha...
Craig Clark acquitted of a 7 million pound boiler room fraud
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Craig Clark acquitted of a 7 million pound boiler room fraud

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Our client was acquitted by the Jury at Ipswitch Crown Court of his involvement in an alleged international boiler room fraud.
Two other defendants were sentenced at Ipswich Crown Court for running an illegal high pressure, share-pushing operation from call centres in Spain. Around 1,250 investors in the UK were persuaded to buy over £7 million worth of shares. Using their "Gordon Gekko" contract notes to complete the transactions, the team were alledged to have siphoned off around 80% of the invested funds. Craig Clark who was represented by Bark & Co. was acquitted by the jury of any wrongdoing.
David Arthur Vidgeon(DOB 02/01/1980), a UK national resident in Spain was sentenced to seven years imprisonment.
Rahul Natwar Patel(DOB 09/09/1975), a UK national resident in Spain was sentenced to seven years imprisonment.
They were found guilty of conspiracy to defraud, contrary to Common Law, on 15 July. Three other defendants, Baldur Sigurdsson, Roland Pibworth (tried in absentia) and Craig John Clark were acquitted.
SFO Director Richard Alderman said: "A boiler room is a predatory and orchestrated 'attack' on private investors so it's very satisfying to see justice delivered for such callous dishonesty. I hope that publicity of today's outcome will serve as a warning for people to think twice when hard-sell investment offers, usually unsolicited, appear tempting. 'No' is the right answer".

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Craig Clark acquitted of a 7 million pound boiler room fraud

  1. 1. Craig Clark acquitted of a 7 millionpound boiler room fraud
  2. 2. Our client was acquitted by the Jury at IpswitchCrown Court of his involvement in an allegedinternational boiler room fraud.Two other defendants were sentenced at IpswichCrown Court for running an illegal high pressure,share-pushing operation from call centres inSpain. Around 1,250 investors in the UK werepersuaded to buy over £7 million worth ofshares. Using their "Gordon Gekko" contract notes tocomplete the transactions, the team were alledged tohave siphoned off around 80% of the investedfunds. Craig Clark who was represented by Bark &Co. was acquitted by the jury of any wrongdoing.
  3. 3. David Arthur Vidgeon(DOB 02/01/1980), a UKnational resident in Spain was sentenced to seven yearsimprisonment.Rahul Natwar Patel(DOB 09/09/1975), a UK nationalresident in Spain was sentenced to seven yearsimprisonment.They were found guilty of conspiracy to defraud,contrary to Common Law, on 15 July. Three otherdefendants, Baldur Sigurdsson, Roland Pibworth (triedin absentia) and Craig John Clark were acquitted.
  4. 4. SFO Director Richard Alderman said: "A boiler room isa predatory and orchestrated attack on private investorsso its very satisfying to see justice delivered for suchcallous dishonesty. I hope that publicity of todaysoutcome will serve as a warning for people to thinktwice when hard-sell investment offers, usuallyunsolicited, appear tempting. No is the right answer".
  5. 5. OutlineDavid Vidgeon and Rahul Patel conspired to defraud investors, many ofwhom were retired and elderly, by high pressure selling of shares insmall/obscure companies, with false claims as to their future worth. Thisfraudulent sales practice was carried out by unlicensed offshore brokeragesknown as "boiler rooms" under the control and direction of Vidgeon andPatel. The period covered is April 2003 to November 2006.The lynchpin in the fraud was Vidgeon. He arranged and controlled the dealsbetween the boiler rooms in Spain and the UK companies whose shares theywere to sell to unsuspecting investors. Vidgeon obtained these companiesthrough the sourcing activities of an intermediary. Together they suppliedseveral sales operations with companies shares to sell. These were based inSpain, one of which was in Barcelona and operated by Rahul Patel. Two otherpersons suspected of criminal involvement in Patels enterprise fled thejurisdiction.
  6. 6. The companies whose shares were sold were worthless. Their function inthis conspiracy was as vehicles used by Vidgeon, Patel and the boiler roomsto take not less than 80% of the investors money.One company was Toppurinn UK Ltd, a timber buildings business in theleisure market. It was supposedly planning to enter the steel frame market;at one stage exploring the possibility of becoming involved in supplying toIraq as part of the US-led reconstruction. This did not materialise.COL Systems Ltd was another company whose shares were beingpushed. Its product "Crime-on-Line", a concept developed in Iceland, wasdescribed as a theft prevention/recovery system for registering property IDreferences on a central online database. The claim was that it would enablethe police to return recovered stolen property to the owners. The systemwas said to have been initially piloted in partnership with the Icelandicpolice and insurance sector but in reality did not achieve commercialviability.
  7. 7. Another company, the Osborn Group, trading as "TheCrowd Went Wild", purported to market sportingmemorabilia on the internet. It had no real substanceand like "Crime-on-Line" it was simply part of thedeception. A template contract note obtained during theinvestigation was file-named "Gordon Gekko"; anindicator of the business philosophy of theoperators. Similar templates were used across all theboiler rooms.A further four companies were sold by the boiler rooms.None of these companies had any trading activity.
  8. 8. The boiler room is a recognised engine of fraud. Boiler rooms areessentially call centres, concerned in the selling of shares on behalfof companies. The selling of shares is an activity regulated by theFSA. Boiler rooms are not authorised and operate illegally, oftenfrom abroad.The boiler rooms sell by cold-calling and use hard-sell tactics. Thesuccess of their deception is measured not only by the sums ofmoney extracted but also by the nature of the people who werepersuaded to part with their money. Even people who believed theywere experienced investors were victims of the fraud.Vidgeons own boiler rooms generated in excess of £2.3 million,nearly a half of which he retained, the rest being paid out to otherconspirators. Rahul Patel earned more than £960,000 from theoperation.Bank accounts in Spain, Latvia, Cyprus and other overseasjurisdictions were established to help manage the monies receivedfrom investors.

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