Scammers conned elderly investors out of £6m

One of the fraudsters - Lillian Milner - bought a Porsche with the stolen money

Six people have been jailed following a £6m investment scam that targeted more than 150 victims, mostly elderly.

Ringleader David Clarkson, 70, of Livesey Branch Road, Blackburn, was sentenced to seven and a half years at Southwark Crown Court in London on Tuesday, after admitting fraud, money laundering and perverting the course of justice at an earlier hearing.

The remaining five perpetrators, who were convicted earlier this year, in March, after a six-month trial, were also sentenced on Tuesday.

The gang targeted victims aged between 60 and 90, using high-pressure sales tactics to persuade them to hand over their money, with one victim saying she was "hounded" into parting with her savings.

The scammers befriended some of the victims, forged documents and impersonated insurance brokers in order to appropriate the cash.

The largest individual loss was £250,000.

Lillian Milner, 57, of Sliven Clod Road, Rossendale, in Lancashire, was jailed for five years and six months for fraud and money laundering, while her husband Graham Milner, 55, of the same address, received three years and six months for money laundering.

A further two members of the gang were jailed for fraud and money laundering: Mark Fallon, 60, of Haslingden Old Road, Rossendale, in Lancashire, was sentenced to four years and six months, and Anthony Flaton, 39, of Beauclerk Green, Winchfield, in Hampshire, received five years.

David Clarkson's son, Paul, 46, of Shawbridge Street, Clitheroe, in Lancashire, received a 20-months suspended sentence for money laundering, and was ordered to carry out 180 hours of unpaid work.

'Pure greed'

City of London Police and bank staff recovered more than £2m of the cash.

Many unsuspecting elderly victims lost their life savings.

In his impact statement, one victim said he found it "increasingly hard to face the day and rarely had a good night's sleep", adding the experience had left him "very depressed - with a general loss of faith in humanity".

Det Con Jay Smith, of City of London Police, said: "These fraudsters stole life savings from hundreds, abusing their trusted positions, out of pure greed."

"I thank the victims and their families for their strength and co-operation, and we remember those who sadly passed during the process. I hope this result brings some comfort.

"We remain committed to pursuing those who abuse trust and exploit the vulnerable. Let this case be a warning: you will be found, prosecuted and convicted."

The police investigation was launched after suspicious payments were made by a company called Sable Intl Ltd to a newly-formed law firm in August 2016.

The company Sable claimed to invest in property, and opened a £3.5m bond scheme, offering fake returns of 7%, to encourage victims to part with their cash.

All the investments were bogus, with the trio using internet advertising, cold-calling and company brochures to convince victims of the company's legitimacy.

The trio behind the company - David Clarkson, Lillian Milner and Flaton - had links to an earlier investment scheme called Equitable Law Capital (ELC).

Graham Milner and Paul Clarkson were appointed group directors of ELC, despite having no relevant experience, and became involved in money laundering.

A front company based in the Seychelles and Switzerland was used to disguise the fact the money had been obtained illegally.

Lillian Milner and Fallon, a solicitor, also used a newly-established law firm to launder money, with commission payments to Flaton going through an account in Mauritius.

Both ELC and Sable went into administration and voluntary liquidation at the end of 2016, owing a total of more than £4 million.