12th December 2014
Two fraudsters who took part in a £70 million boiler room scam have been ordered to repay £843,000 to victims.
Philip Morris and Daniel Gooding were among nine fraudsters found guilty in 2010 of running a far-reaching boiler room scam following an investigation by the Serious Fraud Office (SFO).
Gooding has been ordered to repay £726,000; the SFO believes his total criminal benefit from the scam was as much as £8 million but the total realised was £726,000. Morris is to repay £117,000 from his total criminal benefit of £489,000, although just £117,000 was realised.
The total repayment of £843,000 will go back to the 1,000 victims and the pair have six months to repay the money. If they fail to repay the money Gooding will be given a default sentence of four years and Morris will serve two years and three months.
Both were sentenced earlier this year with Gooding receive a seven year jail term and Morris five years for their part in what the SFO said was one of the largest boiler room scams it has seen.
The fraud saw unwitting investors sold shares in US-listed companies between 2003 and 2007 by a Madrid-based sales team. The shares had restrictions on their re-sale meaning they could not be sold in a 12 month period but those who did try to sell found the shares were worthless and were sitting in shell companies or companies that were not operating.