Jail for Spalding man (73) guilty of £4 million Ponzi Scheme fraud

A Spalding man who was behind a £4 million ponzi scheme fraud has been jailed for more than four years.

Christopher Toynton, 73 of Horseshoe Road, Spalding, spent thousands of pounds of his victim’s cash on luxury cars and holidays.

But now he has been jailed for four and a half years after being found guilty of four counts of fraud by false representation and five counts of fraud by abuse of position.

Co defendant Ross Gibson, 27 of Eve Lane Dudley, was jailed for four years and five months after pleading guilty to fraud by abuse of position, carrying out regulated activities and fraud by false representation.

Lincoln Crown Court heard how detectives from the Economic Crime Unit (ECU) began investigating in the spring of 2019 following complaints of suspected fraud connected to the Lottery Syndicate Club Ltd in Spalding.

The Ponzi scheme operated between late 2017 and 2019 and had several hundred members from across the country, including Lincolnshire and Cornwall. Some of the syndicate’s members also lived abroad.

Toynton acted as the scheme’s sole director, and was responsible for all administration, financial transactions and contact with investors.

He also appointed Gibson to be the scheme’s trader, despite his lack of professional experience or qualifications in financial investment or market trading.

Gibson acted as an unauthorised trader and falsely claimed that trading was a success despite no profits being made.

Around four million pounds was invested in the scheme, most of which were either lost during trading or pocketed and misused by Toynton and Gibson for their own personal gain.

It was revealed Toynton spent £134,000 of investor’s money on luxury cars and holidays, while Gibson spent £400,000 on holidays and designer watches.

Victims were led to believe that the scheme was legitimate and that their investments were safe. Toynton also assured victims that the scheme was low risk and that they could withdraw funds at any time.

Although some money was sent back to victims to add credibility to the scheme, the high returns they were initially promised never materialised.

The scheme eventually collapsed in the spring of 2019. However, Toynton continued to perpetuate the scheme’s success until his and Gibson’s eventual arrest in July 2019.

PC Phil Gidlow, who led the investigation for ECU, said: “This verdict is a culmination of years of hard work by our dedicated investigators in the Economic Crime Unit and only made possible due to the support of the victims.

“Fraud is a despicable crime, undermining our basic trust in others. As a result of this scam, the victims not only suffered huge financial losses, shattering their current financial position and plans for the future, but also caused some to have mental health and relationship problems.

“I hope this case reflects that we are determined to investigate and prosecute the perpetrators and that the victims feel some justice has been achieved.”.