Matthew Ames, son of overseas property company Harlequin’s chairman David Ames, has pleaded not guilty to charges relating to a £1.6m Ponzi scheme tricking investors out of their cash with two fraudulent green investment schemes.
Harlequin says Matthew Ames no longer has any business connections with the property company since being charged with fraud in December 2012.
The charges involve investments in two firms – Forestry for Life and the Investor Club.
Prosecutors told Isleworth Crown Court that Matthew Ames spent more than £1 million from investors and spent the cash himself – including buying a luxury sports car and holidays in the Caribbean.
Extravagant lifestyle
When fraud investigators and the Financial Conduct Authority stepped in after complaints about the two firms from investors, they had assets of just £310 between them.
Nothing appears to have been invested as promised by Matthew Ames.
Prosecutor Stuart Biggs said: “The firms published glossy brochures embellished with quotes from Prince Charles and references to the Kyoto Protocol and Harvard University. The implication was that by putting their cash in the firms, investors were investing ethically.
“However, neither company made any investment. No land was bought, no trees were planted and no effort was made to separate client cash from other monies in the business. Instead, the money invested funded business expenses to attract yet more investment and was spent by Matthew Ames to support his lifestyle and that of his staff.”
Detectives revealed £250,000 was paid back to customers, but came from funds paid in by other investors.
“This activity is often called a Ponzi scheme.”
Disqualified director
Ames was also accused of dishonestly how invested money would be used, the likely returns, and diverted the cash for other uses, the court was told.
Biggs told the court that one investor was shown title deeds for land in Brazil which Ames did not own, while an employee who remarked the businesses were running like a Ponzi scheme was dismissed.
The businesses started in 2008. By 2010 payments to investors halted and both firms were liquidated in March 2011 after the then FCA – then the Financial Services Authority – stepped in to investigate the unregulated investments.
Ames was arrested in September 2011. He was disqualified from acting as a company director for 13 years by the Insolvency Service in August 2013.
The trial continues.
