WORLD FELL APART
Our £300k life savings vanished… we found out it was all spent on stranger’s lavish lifestyle and £205k Rolls Royce
They invested huge sums into a fraudulent investment scheme
A COUPLE'S "world fell apart" after their £300,000 life savings were stolen.
Grandparents Gareth and Marilyn Hamblin's nest egg was taken by fraud kingpin Jonathan Arafiena to fund his lavish lifestyle, including buying a Rolls Royce and designer watches.
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Ship's chief engineer Gareth, 70, has worked for 40 years in a high pressure ocean job which meant he'd missed valuable time at home with his wife and two daughters in Chipping Norton, Oxfordshire.
But he has provided them a good life.
With plans to retire, the couple had decided to invest their savings and Gareth found a company online called CEX Markets.
He filled out an application form and in April 2017 was in regular contact with someone called Paul Kingsley from the firm.
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Gareth and Marilyn were assured their investment would be in foreign exchange and would generate monthly returns of around 1.48%, tax-free.
They tested the water by depositing £5,000 and felt reassured that they had access to the account, as well as a point of contact.
Happy with the return, they invested £300,000 by the end of the year in two deposits.
Marilyn grew suspicious when she searched for Moorwand - the holding company named on the invoices - on Companies House.
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She found a firm that had grown rapidly and had multiple named executives.
However, Mr Kingsley assured the couple the account was regulated by the Financial Conduct Authority.
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He even agreed to meet the couple in London while Gareth was on shore leave.
The CEX HQ seemed legit, with representatives in expensive suits - though the couple were told Mr Kingsley had been called away on urgent business during their visit.
Over the next few months the nest egg grew, but on September 3, 2018 Gareth tried to log on to the account while at sea but couldn't get on the website.
CEX then refused to answer calls or emails.
LIFE SAVINGS STOLEN
Writing about her experiences in the Daily Mail, Marilyn said: "Our life savings had been stolen. I remember the urgent, frantic phone call from Gareth. ‘We’ve been scammed’, he said. I could sense the quiet panic in my usually calm husband’s voice.
"He was so distraught that I was concerned for his safety — especially as we were separated by 6,000 miles. Initially I was too traumatised to believe it could be true. ‘It must be a mistake,’ I thought. I felt helpless."
She went on to say she suddenly began to wonder who they could report it to.
"That’s when I decided we were not going to take it lying down. We needed to fight back. And so began a battle for justice," Marilyn said.
The couple didn't go to their bank NatWest as they assumed it would tell them they transferred the money of their own accord - and couldn't remember if they had been given scam warnings.
They contacted Action Fraud and then to the family solicitors who put them in touch with law firm BrookStreet des Roches and its expert Philip Shaw and his long-term counsel Alex Hill-Smith.
Action Fraud suspected there were more victims and reported it to City of London Police. A criminal investigation was launched.
How to tell if you're being scammed
Make sure you’re aware of the warning signs that might indicate an investment opportunity is a scam:
- Unsolicited approaches by phone call, text message, email or a person knocking on your door.
- When a firm doesn’t allow you to call them back.
- Where you’re forced to make a quick decision, or are pressured into doing so.
- Contact details you’re given, or found on their website, are only mobile phone numbers or a PO box address.
- You’re being offered a high return on your investment, but are told it’s low risk.
The case took six years to come to a conclusion.
In February this year Marilyn said they finally "got a taste of justice".
Three men were convicted of their role in a boiler room fraud in which cold callers coaxed would-be investors into parting with their life savings.
At least 350 people across the UK are known to have invested in the scam - but police fear there are more.
KINGPIN JAILED
Kingpin Arafiena was jailed for five years and nine months at Southwark Crown Court.
Millions of pounds of victims' money was blown on expensive cars, luxury holidays and penthouse apartments.
He even spent £250,000 to pay off his parents' mortgage.
Investors' identities were used to open sham firms and money was laundered through bank accounts.
Marilyn and Gareth had one last chance to get their money back - they sued Moorwand for the £160,000 it had banked and withdrawn without their knowledge.
Earlier this month, the case was heard by the Royal Courts of Justice over three days.
And after six years of pain, sleepless nights, self-blame, anger and frustration, we are ready to put this horrid chapter of our lives behind us and enjoy life again."
Marilyn Hamblin
The couple's money had been paid into an account in the name of RND Global, a sham firm, and held by Moorwand. It was then withdrawn by fraudsters.
Their case was that the loss occurred due to a breach of duty by Moorwand, in that it had failed to make reasonable inquiries before permitting withdrawals, and so had liability.
His Honour Mark Raeside KC ruled this week that there was no breach of duty of care by Moorwand and dismissed the claim.
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Marilyn said that bringing such action is beyond many fraud victims due to the high costs.
She added: "For now, I think, the fight is over. Gareth still plans to retire. And after six years of pain, sleepless nights, self-blame, anger and frustration, we are ready to put this horrid chapter of our lives behind us and enjoy life again."