‘Midas’ financier faces prison over £13m Ponzi fraud
A FRAUDSTER who conned his victims out of £13million in a Ponzi-style investment scam is facing jail.
Alistair Greig convinced dozens of people to hand over cash – in some cases their life savings – by claiming it would yield ‘guaranteed’ returns.
he then splurged the funds on luxury cars, property and days out.
Describing his actions as fraud ‘on a truly shocking scale’, judge lord Tyre yesterday warned Greig – who ran Aberdeen-based Midas Financial solutions (scotland) – there was ‘very little alternative to a lengthy period in custody’.
The high Court in Edinburgh heard Greig, 66, did pay some clients, using cash deposited by other investors – a way to maintain his ‘big lie’, according to prosecutor steven Borthwick.
The conman – formerly of Cairnbulg, Aberdeenshire, before moving to Boston, lincolnshire – told his victims he had connections at Royal Bank of scotland (RBs) and access to a high-interest account.
Mr Borthwick said: ‘it seemed from the outside that the scheme was working as advertised, but that was also a lie and that lie helped promote and prolong the big lie told by Alistair Greig. he used that money for his own selfish reasons.’
Greig’s spending included a holiday home in Cornwall, investing in a classic car business and buying a Bentley and Range Rover. he also funded trips to watch Manchester United at Old Trafford and attended the Cheltenham and Ascot horse-racing festivals.
he told his trial a former business associate was responsible for the losses, adding: ‘My heart goes out to all of them [my clients].
‘There is nothing i can do. i have lost every single thing i had – the properties, my home, everything.
‘i know exactly how they feel. it has happened to me.’
Greig agreed with defence counsel stephen O’Rourke, QC, that he had made a lot of money from his short-term deposit scheme and said the income was for his pension.
he told the court he had made an attempt to take his own life and left a note naming the man he accused of being a thief. But Mr Borthwick told jurors Greig had made a series of false statements, adding: ‘Alistair Greig had no special relationship with RBs. in truth he didn’t place the money entrusted in him in any high-interest bank account.’
Prosecutors listed a total of 165 victims of Greig’s fraud.
he was accused of obtaining £13,281,671 by fraud between August 30, 2001, and October 14, 2014, and of breaching financial services and markets legislation.
he was also charged with converting and transferring criminal property amounting to £5,789,567 between October 6, 2008, and August 19, 2014, under proceeds of crime legislation.
Greig denied committing fraud but was unanimously found guilty of this and two further offences.
One victim told the court the con had left him unable to move abroad with his wife, who has cancer.
Mr Borthwick told the court: ‘in some cases, these were the life savings of people who had worked all their lives and saved to create a nest egg for their retirement.’
lord Tyre deferred sentence until April 15.
The Crown has raised proceedings against Greig to claw back funds.
After court, Detective inspector ian Whittle said: ‘Greig portrayed himself as an honest and professional financial adviser to his victims, promising them guaranteed returns on their investments.
‘he abused their trust and breached his duties by using considerable sums of money to fund a lavish lifestyle. The scale of his deceit and greed is immeasurable.’