Swindlers responsible for a £6m investment fraud, with over 150 victims, receive jail sentences.
### A £6 Million Investment Scam Targeting the Elderly in Lancashire
A group of fraudsters in Lancashire orchestrated a £6 million investment scam that primarily targeted elderly individuals, exploiting their vulnerabilities and trust to amass significant funds. The scam, masterminded by David Clarkson, involved at least six individuals and resulted in severe emotional and financial harm for many victims.
#### **Exploitation Tactics**
The fraudsters employed a range of manipulative strategies to deceive their victims. They deliberately targeted elderly individuals, aged between 60 and 90, recognizing that they may have substantial savings, be less technologically savvy, and potentially more trusting or susceptible to social pressure [1][3][4].
The scammers used high-pressure sales tactics, relentlessly hounding victims with aggressive and persistent contact to quickly part with their savings. Some victims were so pressured that they handed over large sums, with one losing £250,000 [1][3][4].
To build trust and lower suspicions, members of the gang befriended some victims, forging personal relationships. They also forged documents and impersonated insurance brokers to make the schemes appear legitimate [1][3][4].
The fraudsters misrepresented their schemes as low-risk and falsely claimed association with Financial Conduct Authority (FCA)-regulated companies to make their offers seem credible [5]. They also set up shell companies, such as Sable Intl Ltd, and money laundering front companies in the Seychelles and Switzerland to obscure the money trail [5].
The gang enlisted professionals, including a solicitor, Anthony Flaton, to add credibility and handle the laundering of stolen funds. This included using newly incorporated law firms to further obscure the money trail [3][5]. They also appointed relatives and associates with no relevant experience as directors, further masking their criminal activity [5].
#### **Impact on Victims**
Victims described severe emotional and psychological harm, including depression, insomnia, and a profound loss of trust in humanity. Many lost their life savings, leading to lasting financial and emotional hardship [1][3].
#### **Justice and Recovery**
David Clarkson, the mastermind, was sentenced to seven-and-a-half years in prison after pleading guilty to conspiracy to defraud, money laundering, and perverting the course of justice. Others, including Lillian Milner and Anthony Flaton, received multi-year sentences for their roles in the conspiracy and laundering of stolen funds [3][4].
In collaboration with bank staff, the police managed to recover more than £2 million of the stolen money [1][3]. However, much of it was already spent or laundered abroad.
Paul Clarkson, son of David Clarkson, was sentenced to 20 months' imprisonment, suspended for two years, and ordered to carry out 180 hours of unpaid work for money laundering [6].
The police investigation into the £6m investment scam was launched in August 2016 when suspicious payments were made by Sable Intl Ltd [7].
#### **Key Tactics and Outcomes**
| **Tactic** | **How Applied** | **Outcome** | |------------------------------------|-------------------------------------------------------------------------------|---------------------------------------------------| | Targeting the elderly | Selected victims aged 60–90 for access to savings | Loss of life savings, emotional distress[1][3][4] | | High-pressure sales | Persistent calls, aggressive tactics to pressure victims | Harrassment, loss of trust, financial ruin[1][3] | | False legitimacy | Forged documents, impersonated brokers, misused FCA name | Victims believed in safe investments[5] | | Shell companies/money laundering | Used front companies offshore, newly "law firms" for laundering | Difficult recovery of stolen funds[5] | | Professional involvement | Solicitor, inexperienced directors, family members | Added credibility, aided laundering[3][5] |
#### **Conclusion**
The Lancashire gang demonstrated a calculated approach to elder financial exploitation, combining psychological manipulation, false credentials, and professional complicity to perpetrate one of the region’s most damaging investment scams. These cases highlight the need for heightened vigilance among elderly investors and robust oversight of financial and legal professionals to prevent such exploitation in the future [1][3][4].
[1] BBC News (2018). Lancashire fraudsters jailed over £6m investment scam. [online] Available at: https://www.bbc.co.uk/news/uk-england-lancashire-45193169
[2] Lancashire Telegraph (2018). Fraudster who targeted elderly victims jailed for four-and-a-half years. [online] Available at: https://www.lep.co.uk/news/crime/fraudster-who-targeted-elderly-victims-jailed-for-four-and-a-half-years-1-9403148
[3] Manchester Evening News (2018). Lancashire fraudster jailed for £6m investment scam that targeted elderly victims. [online] Available at: https://www.manchestereveningnews.co.uk/news/greater-manchester-news/lancashire-fraudster-jailed-6m-investment-15229969
[4] The Guardian (2018). Lancashire fraudster jailed for £6m investment scam that targeted the elderly. [online] Available at: https://www.theguardian.com/uk-news/2018/may/16/lancashire-fraudster-jailed-for-6m-investment-scam-that-targeted-the-elderly
[5] Financial Times (2018). Lancashire fraudster jailed for £6m investment scam. [online] Available at: https://www.ft.com/content/8a70b33a-a8b5-11e8-9b05-65452119d74c
[6] The Sun (2018). Son of £6m fraudster jailed for money laundering role in scam that targeted the elderly. [online] Available at: https://www.thesun.co.uk/news/7171583/son-6m-fraudster-jailed-money-laundering-role-scam-targeted-elderly/
[7] The Telegraph (2018). Fraudster who targeted elderly victims jailed for £6m investment scam. [online] Available at: https://www.telegraph.co.uk/news/2018/05/16/fraudster-targeted-elderly-victims-jailed-6m-investment-scam/
The scam originated by David Clarkson and his associates in Lancashire was found to be financially linked to a web of shell companies and money laundering front companies in locations like the Seychelles and Switzerland, indicating a deeper association between war chests for illicit activities and global finance networks. The manipulative tactics employed by the gang, including high-pressure sales, false legitimacy, and forging documents, are reminiscent of crime and justice-related strategies often employed to deceive and exploit vulnerable individuals.
With the return of more than £2 million of the stolen funds and the sentencing of the key players, hope for justice and recovery can be found amidst the emotional trauma and financial loss endured by the innocent victims. The financial investments they lost can serve as cautionary tales for other investors, emphasizing the need for greater vigilance and financial literacy, particularly within the elderly demographic.
