Schoolfriend ‘tricked tycoon into £27m Ponzi investment’

A wealthy businessman told a court how an old schoolfriend persuaded him to invest £27 million in a Ponzi-style scheme.

Spencer Steinberg, 45, of Radlett, Herts, Michael Struble, 53, of New Southgate, London, and Jolan Saunders, 39, of Buckhurst Hill, Essex, claimed their firm, SEWL, had contracts to fit out the Olympic Village with electrical goods, Southwark Crown Court heard.

Jeremy Stone told the court he received a call from Saunders offering the chance to invest in SEWL, saying he needed to borrow £256,400 over 30 days to meet an urgent order in exchange for a share of the profits. Mr Stone told the court he eventually ploughed £27 million into the scheme and had £10 million handed back in “returns”, which turned out to be cash paid in by new victims.

Saunders has admitted conspiracy to defraud while Steinberg and Struble deny the charge.

The trial continues.