Two men have been sentenced to prison for defrauding close friends and family out of nearly £9 million in life savings and pensions. Andrew Bird, 60, and Christopher Walton, 67, executed their scam over a six-year period, deceiving individuals into investing large sums, which they used to pay off earlier investors and maintain their fraudulent operations.
Despite denying the charges, Bird and Walton were convicted earlier this year. They received sentences of eight years and five years, respectively, during a recent hearing at Nottingham Crown Court. Judge Michael Auty KC remarked that their scam had a “devastating impact” on the victims.
The duo operated through a company named Anglo American Equities (AAE), which falsely claimed to invest funds in the legitimate Chicago Mercantile Exchange, where various financial instruments are traded. In reality, Bird and Walton were running a Ponzi scheme, where funds from new investors were misappropriated to pay returns to existing investors.
The investigation into AAE began when Derbyshire Police received numerous complaints from individuals unable to retrieve their investments. Detectives quickly uncovered significant wrongdoing. Although Bird and Walton denied 13 counts of fraud by false representation, they admitted to conducting regulated activities without authorization.
During a nine-week trial, Bird was found guilty on all fraud counts, while Walton was convicted on ten charges and acquitted of three. The fraudulent activities spanned from 2010 to 2016.
Detective Sergeant Richard Foster noted that many victims lost their life savings and pensions, with some being unable to recover financially, forcing them back to work or delaying retirement. This scam, a classic Ponzi scheme named after notorious fraudster Charles Ponzi, promised high returns but invested little of the actual funds.
Bird and Walton’s partnership began in 2005 at Horsley Lodge Golf Club in Derbyshire. Bird, managing AAE, was perceived as a successful trader. Walton, a former bank manager, joined forces with Bird and exploited trust, particularly among elderly and vulnerable investors, by promising lucrative returns while minimizing risks.
Investors received falsified documents suggesting their investments were performing well, encouraging further contributions. However, most of the money taken by Bird and Walton was never invested.
The scheme unraveled in August 2016 when it could no longer attract new investments. Notably, Andrew Bird misused his family’s connection to the well-known Birds Bakery to lend credibility to his claims, despite having no actual ties to the business.
Det Sgt Foster emphasized the betrayal of trust in this case, stating, “This isn’t a cold-calling investment scheme; this is where trust and reliability have been exploited to keep the scam going.” A spokesperson for Birds Bakery reiterated that Andrew Bird had no affiliation with their business and expressed sadness over the exploitation of their reputable name.
