Two men were each handed one-year jail terms after being convicted of running companies that cold-called victims and convinced them to invest in carbon credits and rare earth metals.
Half brothers Craig and Marvin Brooks were sentenced in Birmingham Crown Court on 18 June.
Between June 2011 and July 2013, they ran three companies; Bric Global, Citygate Capital and Rare Earth Commodities.
Bric Global claimed to be investment brokers “specialising in the green energy market”, while Citygate Capital claimed to offer investment opportunities in rare earth metals and oxides.
The 350 victims handed over £6.2m ($7.8m, €7m).
Long running case
Police interest in Bric Global was peaked in November 2012 after more than 10 reports were made to Action Fraud, the UK’s fraud and cyber crime reporting centre.
The victims had been cold-called about short-to-medium term voluntary carbon credit investments (VERs), which the brokers claimed could double – or even triple – within six to 18 months.
But when they later got in contact asking Bric Global to sell their VERs, victims were either told they had to wait for the right time to make a bulk sale or were pressured into buying more credits to make their portfolios more attractive to investors.
Biblical message
A search warrant was carried out by the Fraud Squad on 9 November 2012 at a London address used by Bric Global, which was incorporated in June 2011 and listed Craig Brooks as the sole director.
No staff were present as the landlord had evicted them over bad behaviour and unpaid rent.
Officers seized computers and documents, including a script called ‘The Bible’ which was used to rebut victim reluctance and manipulate them into investing.
They also uncovered documents and correspondence relating to Rare Earth Commodities.
Citygate Capital was set up in May 2012 and operated from offices in Cheapside and Lime Street, both in the City of London. It offered investments in rare earth metals and oxides.
The City of London police looked into Citygate and were concerned by the firm’s high telephone bill considering it received no post – suggesting it was using a second address.
Two reports had been made to Action Fraud, which resulted in simultaneous search warrants at both the Cheapside Lime Street offices in July 2013.
Admission of guilt
Both Craig and Marvin Brooks pleaded guilty to engaging in a misleading commercial practice on 2 May 2019 at Birmingham Crown Court.
Two offences of conspiracy to defraud will remain on their files.
A total of £0.5m has been recovered by police, and a further £0.3m is assets has been identified and ordered to be paid over immediately.
All of the money will be used to repay victims.
Under the Proceeds of Crime Act, the half brothers could be liable for life for the remainder of their victims’ losses, or until the full among, plus interest, is repaid.
Cynical and indiscriminate crime
Detective sergeant Marek Coghill of the City of London Police’s Fraud Squad said: “This was an extensive investigation reflected in the sheer number of victims who fell prey to the Brooks brothers’ manipulation.
“The financial loss to over 350 victims in this case is substantial, but the toll that this type of cynical and indiscriminate crime can take is far greater. These offences are not victimless crimes. They target elderly and infirm members of the public, many of whom are often vulnerable.”
