Investment fraud trio jailed for five years at Southwark Crown Court

Financial records indicated that Sotheeswaran, Peck and Deegan were among the Top 20% of staff earners, receiving payments sourced directly from investors who were cold-called and pressured by the brokers into joining the scheme. Investors were told they were not allowed to trade themselves and that only the brokers could execute trades.

Sujanthan Sotheeswaran, aged 35, of The Forum in Molesey was sentenced to three years imprisonment for his involvement.

Darren Peck, aged 43, of Leighton Road in London was sentenced to 21 months’ imprisonment, suspended for two years. He must also complete 25 days’ worth of rehabilitation activity and 100 hours of unpaid work (to be undertaken within 12 months).

Denis Deegan, aged 49, of David Wildman Lane in London was sentenced to two years eight months’ imprisonment.

The were sentenced at Southwark Crown Court on 19 January after all were found guilty of one count of fraud by false representation.

Research is vital

Financial investigator Hayley Wade from the civil recovery team at the City of London Police said: “No investment is ever foolproof. If an investment opportunity seems too good to be true, with the returns being guaranteed, it’s always best to complete some research. Take a moment to think before any money’s handed over, and notably so if pressure is being brought to bear by brokers.”

Wade continued: “At the heart of all investment frauds are bullish tactics and an insatiable greed exhibited by so-called ‘brokers’ acting on behalf of the company. These people are ruthless in their pursuit of money, with no regard for the consequences in terms of the investors whom they target.”

Further, Wade observed: “Before making an investment, seek the advice of an independent financial advisor and never risk what you cannot afford to lose, even if the investment sounds credible.”

In conclusion, Wade said: “Sotheeswaran, Peck and Deegan used elaborate and detailed marketing materials, often copied from respected trading firms, to deceive countless victims. Their custodial sentences should serve as a reminder that no matter how convincing a pitch may be and however clever they think they are, if its fraudulent activity then we will find out.”

Details of the investment

The investment involved depositing funds with the company, which would then trade them on the binary options market, purportedly creating a profit for both the investor and the company. Investors were told they would receive a fixed monthly return, or dividend, as well as an overall profit after 12 months.

However, the reality was that the trading platform used by Choice Option was not connected to a banking system, meaning that investors’ funds were simply at the disposal of the defendants. During the trial, it was widely accepted that the investment proposition from traders was in fact a Ponzi scheme.

By October 2016, clients were unable to access their online accounts, could not establish contact with company staff and were not able to withdraw their funds.

The City of London Police was first alerted to the situation in February 2016 after receiving reports from investors claiming that they suspected the trading company was not legitimate.

Client correspondence

It’s believed that the ‘brokers’ used aliases when corresponding with prospective clients. Some of the aliases included ‘Jonathan Hart’ from 1970s show Hart to Hart and ‘Miles Richards’ from the 2014 film The Riot Club. ‘Harvey Specter’ from the US law drama Suits, as well as ‘Alister Ryle’ and ‘Harry Villiers’ from The Riot Club, were also used by ex-employees at Choice Option, although these individuals were not charged.

The brokers at Choice Option were all voluntarily interviewed under caution, with Deegan and Sotheeswaran answering ‘No comment’ in response to all questions put to them. Peck gave a full account in interview, claiming that he believed it was a genuine investment as he could see trades being executed on the platform used by brokers at the firm.