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British Duo Jailed for $57M Co-Working Space Ponzi Scheme
NEW YORK, NY – In a major blow to a massive Ponzi scheme, two British citizens have pleaded guilty to conspiracy to defraud investors in a fraudulent co-working space business. James Robinson, 47, and David Kennedy, 48, both from the United Kingdom, were arrested in Spain on November 30, 2022, and were subsequently extradited to the United States.
According to the indictment, Robinson and Kennedy partnered with notorious fraudster Renwick Haddow to launch a massive Ponzi scheme that lured hundreds of unsuspecting investors from around the world, all in exchange for massive commissions. The scheme, which was operated through a company called United Property Group, sold real estate and other investing opportunities to potential investors.
The indictment alleges that Robinson and Kennedy knowingly provided investors with false information about the management and operations of Bar Works, a private co-working space company controlled by Haddow. They claimed that Bar Works’ CEO, “Jonathan Black,” had an extensive background in finance and past success with start-up companies, when in fact Haddow was the true owner and had been disqualified as a director of any UK company for eight years.
Through their agents, Robinson and Kennedy recruited investors to purchase workspace leases in Bar Works, which ultimately raised over $57 million from over 800 investors worldwide. The duo received over $2 million in commissions for their role in the scheme, with another co-conspirator, James Moore, receiving an additional $1.6 million.
U.S. Attorney Damian Williams praised the guilty pleas, stating, “Today’s plea signifies this Office’s commitment to hold accountable every perpetrator of fraudulent investment schemes, no matter where they operate.”
Robinson is scheduled to be sentenced on September 25, 2024, before U.S. District Judge Lewis A. Kaplan, while Kennedy is set to be sentenced on May 7, 2024, before the same judge. Both defendants face a maximum of 20 years in prison for their role in the scheme.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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