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Stephen Rae was convicted at Newcastle Crown Court in June this year, after admitting he defrauded 16 separate clients between June 2014 and January 2016.
The victims all believed they had been investing their hard-earned cash and pensions into a range of legitimate financial schemes – but never saw their profits materialise.
In 2015 two victims reported Rae to Durham Constabulary and Action Fraud respectively after they sent him six-figure sums to invest in schemes, which turned out to be bogus investment plans.
When Action Fraud referred the case to Northumbria Police, specialist officers launched a thorough investigation and executed a warrant at Rae’s home in South Shields, which saw them find a range of luxury cars, including an Aston Martin Vanquish parked up at the property.
Officers seized Rae’s laptop and devices and uncovered the financial records of 113 clients – as well as banking records confirming clients had invested almost £2.8 million with him.
All clients were contacted to establish if there were any further victims – but only 14 individuals responded and all reported substantial losses.
When Rae was brought in for questioning in January 2018, he refused to comment during interview and would not assist enquiries.
He was later charged, and convicted after work from Northumbria Police’s financial team.
On Friday (December 8) Rae, of King George Road in South Shields was sentenced to seven years in prison at at Newcastle Crown Court.
Speaking after the sentencing, the officer in charge of the case, Detective Constable Craig Tomlinson said: “Finally we have justice for Rae’s victims. This sentencing marks the end of a long, drawn-out process for them and I hope they can now begin to move forward with their lives.
“No custodial sentence will be able to take away the devastating impact his greed and his lies have had on the victims. The impact of his actions means a number of hardworking and trustworthy people have lost their full pension and life savings – and the betrayal and breach of trust will no doubt affect many of the victims for years to come.
“Fraud has a profound impact on victims, made even worse when the perpetrator is supposed to be a trusted member of the community, and they abuse that power.
“This was a complex case and I would like to praise the victims who came forward and instigated action against Rae. I would also like to thank the team of officers, staff and criminal justice partners for their help in proving crimes like this don’t pay.”
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Det Con Tomlinson added: “As a Force, we will not tolerate criminality like this and will do all we can to bring offenders before the courts.
“If you plan on investing, please do your research and make sure that any advisor or company you plan on using is registered with the Financial Conduct Authority and their contact details match up. If the website, number and address don’t match, don’t invest.
“You can also check the FCA warning list of firms to avoid and seek impartial advice. We’d also advise people to be cautious when parting with large sums of money. And if you suspect foul play, report to Action Fraud immediately.”
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