'Conman' on trial over alleged £640k theft of Lancashire investors' cash (From Lancashire Telegraph)

'Conman' on trial over alleged £640k theft of Lancashire investors' cash

10:46am Tuesday 23rd February 2010 in

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A ‘CONMAN’ stole almost £640,000 before claiming three disappearing business partners had taken the money, a court heard.

John Sheldon Williams, 71, set up a ‘Ponzi’ scheme which collapsed – leaving dozens of people who thought he was a friend out of pocket, it is alleged.

Williams’ scheme relied on recycling cash, paying previous investors with new investors’ money, Preston Crown Court heard.

“Such a system demands an ever-increasing flow of money,” said Peter Horgan, prosecuting.

“When further cash is not forthcoming, such a scheme will collapse and that is just what happened in this case.”

Between 1993 and 2008, Williams, who ran Acorn Marketing Services, conned clients, the barrister said, into handing over money which he promised to pay back with good interest.

He told his alleged victims, from across Lancashire, including Burnley, Blackburn, Oswaldtwistle, Clitheroe, Accrington, Todmorden, and Chorley, the money was being used in property investment, or providing loans.

“Like all good conmen he appeared genuine and trustworthy to clients,” said Mr Horgan.

“Investors often thought of him as a family friend who had known him for many years.”

A jury of six men and six women heard that Williams did willingly repay some of his clients.

But this was only to promote ‘an air of legitimacy and confidence to what he was doing overall’, said Mr Horgan.

Williams was not living the high life – but ‘above his limited means’, said the prosecutor.

Williams had remortgaged his home in 2003 for £102,000.

Two years later he took out a second mortgage for £15,000 and sold the property in 2008, netting £53,000, which he used to pay off outstanding debts.

That year he was scheduled to pay out a number of schemes, ‘but there was nowhere else for the defendant to turn,’ said Mr Horgan.

Close to bankruptcy, he wrote to his clients saying he was retiring because of ill health, the jury was told.

Weeks later he wrote again to his clients saying he had been defrauded by three business partners, who had taken the money and run, the court heard.

“It was a desperate ruse on his part” and an “elaborate smoke screen” to portray himself as the victim of a fraud, said Mr Horgan.

The crown alleges that, in total, Williams stole £639,685. Williams, of Kilnhouse Lane, St Annes, Lancashire, denies 35 counts of theft.

(Proceeding).