By Kerry Howard Mwesigwa
Anthony Constantinou, the former director of Capital World Markets (CWM), a British foreign exchange company, has been found guilty of orchestrating a £50 million Ponzi-style fraud scheme. Constantinou, who promised investors “remarkable returns,” was convicted on multiple charges, including fraud by false representation and two counts of transferring criminal property. Constantinou’s trial took place at London’s Southwark Crown Court, in his abscence as he absconded while on bail.
Prosecutors revealed that Constantinou operated CWM, enticing investors with the lure of a 5% monthly return on their investments. The company’s luxurious City of London offices and high-profile sports sponsorships, such as with Premier League soccer club Chelsea, added to its appeal. However, in March 2015, the fraud began to unravel when City of London Police raided CWM’s premises. Investigations revealed that Constantinou had misappropriated funds for personal use, including renting a lavish 6 bedroom mansion, funding private flights, and hosting extravagant parties. Notably, he spent a staggering £2.5 million on his wedding on the Greek island of Santorini. The investigation further exposed the absence of legitimate forex trading activities at CWM and the direct payment of investors using their own funds. Constantinou’s attempt to evade justice by using fake identity documents led to recent arrest in Bulgaria. However, he was released on bail and remains at large.
The conviction of Anthony Constantinou sheds light on the severity of the fraudulent scheme perpetrated through CWM. Hundreds of victims, including individuals from the Gurkha and Nepalese community, suffered losses totaling approximately £50 million. Prosecutors argued that Constantinou controlled the bank account where investors’ money was deposited and paid out funds directly to investors, giving the appearance of a legitimate investment scheme. However, evidence revealed a lack of genuine foreign exchange trading and the existence of a Ponzi-style structure.
During the trial, Constantinou had initially pleaded not guilty to all charges. However, he absconded halfway through the proceedings, leading the trial to continue in his absence. The jury ultimately found him guilty on seven charges, including fraud by false representation, fraudulent trading, and transferring criminal property. While the court has issued an international arrest warrant for Constantinou, he remains at large. Judge Gregory Perrins has scheduled his sentencing for June 9, which will take place in his absence.
