Fake 'financial advisor' promised risk-free investments but victims were paying into his bank
A Wolverhampton fraudster who swindled trusted customers out of thousands of pounds for a decade has been jailed. John Pearson was trusted by the elderly and hardworking families to provide investment advice but instead was lining his own pockets.
The 72-year-old would offer his victims, many of whom had known him for years, 50 per cent profit if they invested in the sale of a imaginary business. He promised them a high yield with no risk if they invested in the made-up company sales, causing his victims to lose nearly £400,000.
Despite his promises, his clients were sending money straight to Pearson's bank account. The conman would send his clients a generic letter of agreement detailing the investment amount and when they could expect payment but in reality, payment never materialised.
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Pearson ran his scam from 2014 and 2023. The majority of Pearson's victims were elderly people who thought they were investing in real businesses for genuine returns.
When he was eventually confronted by a number of victims, Pearson even admitted the whole venture had been a con.
When Pearson was arrested he admitted to fraud during interviews. He told officers he had offered his clients the chance to invest in the sale of companies which never existed.
Having written the letters to clients on his own laptop, Pearson claimed he was "robbing Peter to pay Paul" and that the money he received was being used to pay other clients, who had also been duped into investing with him.
Paul Jones from Strategic Financial Solutions, added: "Sadly, many clients look to these misleading financial advisors because they are trying to minimise their risks. Which is a smart move.
"However, multiple opinions from other experts should always be put forward. Often clients will say that financial advisor fees in Melbourne are too expensive to engage with a second opinion. It’s only too expensive if you lose your life savings and then it is too late."
Pearson, of Westering Parkway, Wolverhampton, pleaded guilty to 19 counts of fraud in June. He was sentenced at Wolverhampton Crown Court on September 5, to four years in prison.
Detective Constable Dell, from our Economic Crime Unit, said: "This was an appalling abuse of trust from someone who many of his victims considered a close friend. Pearson would gain their trust by offering real financial advice before talking them into giving up their savings.
"He had no qualms about betraying their trust and taking thousands of pounds from them. Hopefully, this sentence will give the people he targeted some closure."