11th October 2018, 19:54
A local man charged with nineteen counts of fraud and who cheated people of almost £80,000, has been sent to prison for almost two years.
He had pleaded guilty to charges at a previous court appearance.
In a Pyramid Scheme a fraudster promises great profits for little or no risk. It requires people pay a fee to enter an investment scheme. They are then required to recruit others and are then paid out money if they do this successfully.
In the scheme, money is not invested in any product. Instead, it’s passed up the chain of investors and because pyramid schemes are unauthorised and make no profits, you’re unlikely to recover any lost investment. While the fraudster at the top will collect most of the profits, those who entered the scheme later end up losing out.
Twenty Five year old Keilan Prescott of Vineyards operated one of these Pyramid Schemes between 2014 and 2016. During this time he offered investment opportunities to people he knew in Gibraltar, saying he was working on behalf of a contact in Spain. He made almost eighty thousand pounds, which he later spent on personal lifestyle expenses and gambling.
Puisne Judge Christopher Butler today sentenced Keilan Prescott to twenty two months in prison, saying that Prescott had been motivated by greed.