£1.93m fraud gang used Bewdley address, court told (From Kidderminster Shuttle)

£1.93m fraud gang used Bewdley address, court told

3:18pm Monday 5th October 2009

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A GANG which operated an international fraud worth nearly £2 million used an office address in Bewdley, a jury was told.

The scam targeted UK citizens living abroad and conned them into putting money into a firm called Prudential Commercial Investments, it was alleged.

Investors were promised lucrative returns from interest the company collected by providing bridging loans for buyers of commercial property. But the "clever, sophisticated and ruthless scheme" was set up purely to line the pockets of the fraudsters, said John McGuinness QC, prosecuting at Worcester Crown Court.

Between August, 2003 and February, 2004 PCI collected £1.93 million.

The jury heard that a letter to a potential investor from one of the gang had on it the office address of Bridge House, Severnside North, Bewdley.

It claimed PCI had been in operation for five years, despite it being set up only two months earlier in the Seychelles.

It also boasted a portfolio of 20 million US dollars and a connection with high-profile accountancy firm PricewaterhouseCoopers.

But the letter was "a tissue of lies", said Mr McGuinness, and part of a fraud which stretched to Australia, the Czech Republic, Cyprus and South-East Asia.

PCI later moved offices to The Case Mill in Tameside, Ludlow, the jury heard.

West Mercia Police and the Serious Fraud Office became involved in 2004 and interviewed 283 witnesses.

On trial are David Usher, 52, of Pepper Lane, Ludlow, Charles Frisby, 65, of Haugh Road, Rotheram, John Roope, 52, of Ruffield Side, Wyke, Bradford and Douglas Miller, 50, of Chatsworth Road, Worksop.

They all deny conspiring to defraud by making false representations about PCI's role in the management of property portfolios.

Frisby and Miller deny acquiring criminal property and Miller denies entering an arrangement over criminal property by transferring cash from one bank account to another.

The court was told that two other men had already pleaded guilty to the conspiracy and a third man had died.

Roope's lover, Iva Zizkova, allegedly had £721,000 paid into her bank account in the Czech Republic but she cannot be extradicted to stand trial, said Mr McGuinness.

He claimed Roope was the ringleader and Usher, who received £56,000, ran the admin branch of PCI in Ludlow.

The scheme was operated through independent financial advisers who found investors all over the world.

The trial continues and is likely to last up to three months.

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