11 hours ago
‘Mission to Mars' ex-Nasa scientist admits £1m fraud
A former Nasa scientist who worked on a project to send humans to Mars has admitted a £1 million fraud involving more than 100 investors.
John Burford, 85, swapped space exploration for financial trading under the name 'Tramline Trader'.
He admitted one charge of fraud in representations to investors and three charges of unauthorised trading when he appeared at Westminster magistrates' court on Friday.
Burford leaving Westminster magistrates' court
JAMES MANNING/PA
Tom Godfrey, representing the Financial Conduct Authority for the prosecution, said: 'It is a substantial fraud. For a number of years Mr Burford had been advising individuals on investments through a subscription service.'
Burford set up three investment schemes which raised £1 million. He traded £760,000 through three accounts at IG Index and used the balance of the money to buy himself a house, the court heard. Godfrey said the adviser lost 'significant sums' through his trading with IG Index, misled investors about the value of the funds and refused to allow them to withdraw their money.
Alexander dos Santos, for the defence, asked for a pre-sentence report by a probation officer.
Burford, from Mansfield in Nottinghamshire, accepted funds from investors over a three-year period and managed their investments without authorisation, the court heard. Tramline Trading charged subscribers £595 for alerts on possible trading opportunities and £995 a year for his VIP Traders Club.
Burford regularly misrepresented the value of the funds and how much money he had lost while trading through his company, Financial Trading Strategies Ltd. He promoted three investments called Tramline funds which were named after his book on trading strategies called Tramline Trading.
The blurb for his book states that it outlines a 'straightforward, winning trading method' with trading diaries for 'four-month trading campaigns in gold and the Dow'.
The book synopsis says: 'There are certain universal chart patterns that are traced out time and time again by markets — these patterns have stood the test of time and can be instantly recognised by a skilled trader. When you learn how to spot these patterns and use them to forecast market action you have the basis of a winning trading method.'
Burford told his clients in January last year: 'It is with immense regret that I must report to you that from circumstances beyond my control, I have closed down the Tramline funds.'
Burford completed a degree in theoretical and mathematical physics at Bristol University and a PhD at University of Toronto. He went on to work for Nasa's manned Mars exploration team.
He was released on bail to be sentenced at Southwark crown court.
