A financial adviser who pocketed almost £2m ($2.55m, €2.33m) from his victims as part of a investment fraud scam has been convicted, according to Northumbria Police.
Stephen Rae appeared at Newcastle Crown Court on 20 June, where he pleaded guilty to 16 counts of fraud against 16 separate victims.
The offences date between June 2014 and January 2016 and followed a similar pattern of victims investing pensions, lump sums and savings with Rae, but never seeing their return.
He has since been released on bail and will be sentenced on 8 September 2023.
Details
Rae’s offending came to light in 2015 when two victims reported him to Durham Constabulary and Action Fraud, respectively.
The victims had both sent him substantial six-figure sums under the proviso he would invest the cash into various schemes and repay them with significant interest.
However, both victims reported to the authorities when their sums failed to materialise, and Rae began ignoring their calls and correspondence.
The case was referred to Northumbria Police by Action Fraud, and specialist officers launched a thorough investigation. This began with a warrant, executed at Rae’s address in South Shields.
During their searches, officers noted a luxury car at the address including an Aston Martin Vanquish, and they also seized his laptop and devices.
When examined, Rae’s laptop was found to have financial records belonging to 113 clients and his banking records showed that approximately £2.8m had been invested with him.
Officers approached all clients to establish if there were any further victims – and were contacted by 14 individuals, all reporting substantial losses and a similar pattern of behaviour to the first two victims.
When Rae was brought in for questioning in January 2018, he refused to comment in interview, and would not assist with enquiries. But he was later charged with a total of 16 offences.
‘Devastating impact’
Craig Tomlinson, detective constable at Northumbria Police, said: “This is exactly the result we wanted for our victims, it’s just a shame it has taken Rae so long to admit what he’s done.
“I hope the sentence he is given will reflect the devastating impact his greed has had on his victims, some of whom have lost their full pension pot and life savings.
“Fraud can ruin lives. Victims not only lose their savings and the futures they dream of, but many are often deeply affected by the betrayal and breach of trust and confidence they have suffered.
“This has been a long and complex case and I would like to praise the victims who came forward for their help and support and I hope this conviction offers them a sense of closure.
“For anyone who thinks they can abuse the law and a position of trust like this, think again. As a force, we will not tolerate criminality like this and will do all we can to bring offenders before the courts.”
