Latest news with #financialScam
Yahoo
8 hours ago
- Business
- Yahoo
The hunt for Britain's ‘Wolf of Wall Street'
When Ben was convinced by a financial adviser to visit a swanky new trading floor at the top of a City of London skyscraper the Heron Tower, he couldn't believe his luck. Staff promised him returns of 60pc a year if he invested, and told him that the business – Capital World Markets (CWM) – was run by a 'Svengali-type individual who was hugely well-connected'. It sounded to good too be true. That's because it was. On the surface, Anthony Constantinou – the 'Svengali-type' – had made a fortune in a remarkably short amount of time. He had all the trappings of success, spending £600,000 on just six months rent for a home in London, as well as £427,000 on private jet trips, £2.5m on his wedding in Santorini and more than £70,000 on his son's first birthday party. Luxury cars lined the driveway of his rented Hampstead home. But there was one problem: the cash was coming from a multimillion-pound Ponzi-style investment scam, which relied on ordinary savers like Ben to buy into his story. Earlier this month Constantinou, 41, was ordered to pay back £64m or spend 14 more years in prison for his large-scale fraud, but police have no idea where he is. A death certificate filed last year stated that he died of a heart attack while in Guadalajara, Mexico, but investigators have since claimed that some of the documents contain inaccuracies, according to Bloomberg. CWM only operated from late 2013 until early 2015, but in that time captured hundreds of victims. Most were lured through word of mouth, with those who introduced people receiving a cut of the funds – a classic Ponzi trick. Before it all unravelled, prospective investors were told that they were putting money into 'risk-free' transactions on the foreign exchange (FX) markets, usually for a minimum investment of £100,000. In reality it was all a scam, underpinned by the illusion of wealth at the top. 'It was like the 1980s movie Brewster's Millions. [Constantinou] was spending money to create this impression of himself, creating a legend and cult of the individual,' says a source with close knowledge of the former City boss. They likened the atmosphere in his office to the Hollywood film The Wolf Of Wall Street, which chronicled the rise and fall of real-life investment fraudster Jordan Belfort. 'Everyone who spoke to [Constantinou] came away with the view that he was a massive c---. He's an absolute t-----, but he had the chutzpah not to worry about the size of the lies he was telling.' His lies were so convincing that Ben became one of hundreds of people lured in. Many believed that Constantinou was able to personally guarantee the cash because of the supposed wealth inherited from his fashion tycoon father, who was murdered in a case that remains unsolved. Aristos Constantinou, who ran a string of shops in London, was shot dead by masked men on new year's day 1985 at his home on The Bishops Avenue in Hampstead, north London, known as Billionaire's Row. Major CWM sponsorship deals, such as with Chelsea Football Club, also helped give the company the patina of legitimacy. Everything seemed calm, organised and above board. The hospitality was flowing, with potential investors given front-row seats to major events. Constantinou was filmed showing the Princess Royal around the 2015 London Boat Show, which CWM sponsored, just months before its offices were raided. 'It was a clever scam, there's no doubt about it,' says Ben. 'Everything was designed to pull the wool over our eyes.' Staff were told that CWM's investment strategy was simply too 'long and boring' for them to understand. The word 'Ponzi' was also not to be used in the office, with one member of staff allegedly sacked for uttering it in the office kitchen. The atmosphere in the office was said to be intimidating and volatile, with workers belittled by Constantinou and alcohol featuring heavily. In 2016, he was jailed for a year for assaulting two women. A court heard how he pushed a woman up against the frosted glass of the office reception area and went on to grope and kiss her against her will. While on bail for the attack, he assaulted another woman during drinks after a business meeting, shoving a chunk of hot wasabi paste in her mouth. It was around the same time that CWM began to unravel. CWM's Square Mile office was raided by police in 2015 after a tip off and the business shut down. Ben turned out to be one of the lucky ones. Despite seeing returns of 5pc a month after initially putting his cash in, he started to grow suspicious of Constantinou's tale and pulled his money out just before. 'It was too much of a red flag generating that amount of money from the margins – if it was that good it would have been discovered by a hedge fund,' he recalls. Hundreds of others ended up losing their lifetime savings. A person close to some of the victims and their families says: 'There was a retired lorry driver who put all his money in and lost the lot, and a group of Gurkhas who put their retirement funds in and lost the whole shebang.' Constantinou first disappeared in June 2023 when he was found guilty of fraud by false representations, fraudulent trading and money laundering at Southwark Crown Court. He was convicted by a jury in his absence and sentenced to 14 years in jail. Prosecutors estimated that Constantinou made £97m from the scam and recovered a Range Rover, Porsche and CWM-branded motorcycle during their investigations. A confiscation order for £64m was handed down this month. Adrian Foster, of the Crown Prosecution Service, said: 'This was a callous scam targeting members of the public. Many people lost their hard-earned money because of Constantinou's greed and false promises in this fake investment scheme.' The fraudster, who uses the aliases Antonis Hadjicostis and Georgios Arnaoutakis, was arrested in Bulgaria in 2023 while trying to enter Turkey with false documents, but was later released. Aside from the death certificate in Mexico, the trail has gone cold. As the hunt for Britain's 'Wolf of Wall Street' continues, those whose lives have been affected by Constantinou's tricks continue to feel haunted by the experience. 'I've been the target of another scam since,' admits Ben. 'So now I do all my own investments – I will not take the advice of anybody from anywhere. There are too many scams out there.' Some names in this article have been changed Broaden your horizons with award-winning British journalism. 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Telegraph
11 hours ago
- Business
- Telegraph
The hunt for Britain's ‘Wolf of Wall Street'
When Ben was convinced by a financial adviser to visit a swanky new trading floor at the top of a City of London skyscraper the Heron Tower, he couldn't believe his luck. Staff promised him returns of 60pc a year if he invested, and told him that the business – Capital World Markets (CWM) – was run by a 'Svengali-type individual who was hugely well-connected'. It sounded to good too be true. That's because it was. On the surface, Anthony Constantinou – the 'Svengali-type' – had made a fortune in a remarkably short amount of time. He had all the trappings of success, spending £600,000 on just six months rent for a home in London, as well as £427,000 on private jet trips, £2.5m on his wedding in Santorini and more than £70,000 on his son's first birthday party. Luxury cars lined the driveway of his rented Hampstead home. But there was one problem: the cash was coming from a multimillion-pound Ponzi-style investment scam, which relied on ordinary savers like Ben to buy into his story. Earlier this month Constantinou, 41, was ordered to pay back £64m or spend 14 more years in prison for his large-scale fraud, but police have no idea where he is. A death certificate filed last year stated that he died of a heart attack while in Guadalajara, Mexico, but investigators have since claimed that some of the documents contain inaccuracies, according to Bloomberg. Classic Ponzi trick CWM only operated from late 2013 until early 2015, but in that time captured hundreds of victims. Most were lured through word of mouth, with those who introduced people receiving a cut of the funds – a classic Ponzi trick. Before it all unravelled, prospective investors were told that they were putting money into 'risk-free' transactions on the foreign exchange (FX) markets, usually for a minimum investment of £100,000. In reality it was all a scam, underpinned by the illusion of wealth at the top. 'It was like the 1980s movie Brewster's Millions. [Constantinou] was spending money to create this impression of himself, creating a legend and cult of the individual,' says a source with close knowledge of the former City boss. They likened the atmosphere in his office to the Hollywood film The Wolf Of Wall Street, which chronicled the rise and fall of real-life investment fraudster Jordan Belfort. 'Everyone who spoke to [Constantinou] came away with the view that he was a massive c---. He's an absolute t-----, but he had the chutzpah not to worry about the size of the lies he was telling.' His lies were so convincing that Ben became one of hundreds of people lured in. Many believed that Constantinou was able to personally guarantee the cash because of the supposed wealth inherited from his fashion tycoon father, who was murdered in a case that remains unsolved. Aristos Constantinou, who ran a string of shops in London, was shot dead by masked men on new year's day 1985 at his home on The Bishops Avenue in Hampstead, north London, known as Billionaire's Row. Major CWM sponsorship deals, such as with Chelsea Football Club, also helped give the company the patina of legitimacy. Everything seemed calm, organised and above board. The hospitality was flowing, with potential investors given front-row seats to major events. Constantinou was filmed showing the Princess Royal around the 2015 London Boat Show, which CWM sponsored, just months before its offices were raided. 'It was a clever scam, there's no doubt about it,' says Ben. 'Everything was designed to pull the wool over our eyes.' Staff were told that CWM's investment strategy was simply too 'long and boring' for them to understand. The word 'Ponzi' was also not to be used in the office, with one member of staff allegedly sacked for uttering it in the office kitchen. Red flags The atmosphere in the office was said to be intimidating and volatile, with workers belittled by Constantinou and alcohol featuring heavily. In 2016, he was jailed for a year for assaulting two women. A court heard how he pushed a woman up against the frosted glass of the office reception area and went on to grope and kiss her against her will. While on bail for the attack, he assaulted another woman during drinks after a business meeting, shoving a chunk of hot wasabi paste in her mouth. It was around the same time that CWM began to unravel. CWM's Square Mile office was raided by police in 2015 after a tip off and the business shut down. Ben turned out to be one of the lucky ones. Despite seeing returns of 5pc a month after initially putting his cash in, he started to grow suspicious of Constantinou's tale and pulled his money out just before. 'It was too much of a red flag generating that amount of money from the margins – if it was that good it would have been discovered by a hedge fund,' he recalls. Hundreds of others ended up losing their lifetime savings. A person close to some of the victims and their families says: 'There was a retired lorry driver who put all his money in and lost the lot, and a group of Gurkhas who put their retirement funds in and lost the whole shebang.' Constantinou first disappeared in June 2023 when he was found guilty of fraud by false representations, fraudulent trading and money laundering at Southwark Crown Court. He was convicted by a jury in his absence and sentenced to 14 years in jail. Prosecutors estimated that Constantinou made £97m from the scam and recovered a Range Rover, Porsche and CWM-branded motorcycle during their investigations. A confiscation order for £64m was handed down this month. Adrian Foster, of the Crown Prosecution Service, said: 'This was a callous scam targeting members of the public. Many people lost their hard-earned money because of Constantinou's greed and false promises in this fake investment scheme.' The fraudster, who uses the aliases Antonis Hadjicostis and Georgios Arnaoutakis, was arrested in Bulgaria in 2023 while trying to enter Turkey with false documents, but was later released. Aside from the death certificate in Mexico, the trail has gone cold. As the hunt for Britain's 'Wolf of Wall Street' continues, those whose lives have been affected by Constantinou's tricks continue to feel haunted by the experience. 'I've been the target of another scam since,' admits Ben. 'So now I do all my own investments – I will not take the advice of anybody from anywhere. There are too many scams out there.'
