A man accused of defrauding approximately €1.2 million from dozens of victims who believed they were investing in gold and silver has been arrested at Knock Airport, Co Mayo.
The suspect, a company director in his 60s, was arrested by gardaí from the Garda National Economic Crime Bureau (GNECB) as he was about to leave the country on a flight on Sunday morning. He was being questioned at Claremorris Garda station on Sunday under the provisions of Section 4 of the Criminal Justice Act 1984.
The suspect has been under investigation for some time by the Garda and regulatory authorities in the Republic. He can be questioned for up to 24 hours without charge and his arrest is regarded as a significant juncture in the criminal investigation into him.
“The arrest relates to an investigation into investment fraud. More than 65 complaints have been made to An Garda Síochána from persons who were deceived and lost approximately €1.2 million in total, between 2016 and 2022,” Garda Headquarters, Phoenix Park, Dublin, said confirming the arrest.
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It is alleged the suspect ran a company registered in the Republic which purported to be a vehicle through which people could purchase gold and silver as an investment. Many victims did so in the belief the gold and silver they were investing in would increase in value, to be sold at a later date and delivering a profit for them.
The company was based in Dublin, and has since been wound up after the man now under arrest was accused of running a “Ponzi scheme”. It is alleged the suspect took some of the money he received from people who believed they were investing and used it for his own personal benefit, at times through third parties linked to him.
Other money invested, it is claimed, was used to pay some of the people who had invested in the company in its early years. This was done, it is claimed, in an attempt to show he was running a legitimate and successful investment vehicle, which is classic tactic in a “Ponzi scheme”.
However, when the company was wound up it had no stock of gold or silver and was insolvent to the point there was no possibility it could repay the people who had invested their money. However, it is believed silver and gold valued at about €3 million had been bought by the company in a three-year period to 2021.
In some cases, people who invested money were told their gold or silver was being stored in vaults owned by the Harrods luxury department store in London and were even furnished with certificates confirming their purchase, though no such arrangement was in place with Harrods.
The man under arrest is accused of concealing the extent of the company’s financial situation and failing to maintain proper records as well as giving false representations that funds invested in his company would be repaid, even though it was insolvent with no hope of rescue.
When officials investigating the company, and trying to manage the aftermath of its collapse, went to its offices they found the premises had been vacated, with no files or computers. The matter was referred to the Garda and while the GNECB has been carrying out the criminal investigation, the Criminal Assets Bureau has also been involved in the case.
The man being questioned on Sunday has also come to the attention of the authorities in Britain, where legal claims by customers had been brought against him. In one case it was alleged he never returned a gold bar he had borrowed from a customer to show to other investors. While he made some efforts to repay the value of the gold bar, over half of the value was outstanding.
