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British Duo’s Ponzi Scheme Lands Them Behind Bars
In a devastating blow to unsuspecting investors, two British nationals, James Robinson, 47, and David Kennedy, 48, have pleaded guilty to engaging in a massive Ponzi scheme that fleeced investors out of millions.
According to the U.S. Department of Justice (DOJ), Robinson and Kennedy partnered with notorious fraudster Renwick Haddow to launch the scheme, which targeted hundreds of investors worldwide. The duo, along with co-conspirators, used their agent network in Spain to peddle workspace leases in a co-working space company called Bar Works Inc.
The scheme, which operated between 2015 and 2017, accepted millions of dollars in investments from unsuspecting investors. However, the investors were not aware that Haddow had been disqualified as a director of any UK company for eight years and had a history of operating investment schemes through misrepresentations that lost investors substantial amounts of money.
Robinson and Kennedy, in exchange for millions of dollars in commissions, knowingly provided investors with fraudulent offering documents and other information. They even went as far as to claim that they had met the fictitious CEO of Bar Works, “Jonathan Black,” in New York as part of their own due diligence.
The scheme eventually collapsed in June 2017, leaving investors with significant losses. Prior to its collapse, Bar Works obtained over $57 million from over 800 investors worldwide. Robinson and Kennedy received over $2 million in commissions from Bar Works, while their co-conspirator, James Moore, received another approximately $1.6 million.
Robinson and Kennedy each pleaded guilty to one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison. They are scheduled to be sentenced on September 25, 2024, and May 7, 2024, respectively. U.S. Attorney Damian Williams stated, “Today’s plea signifies this Office’s commitment to hold accountable every perpetrator of fraudulent investment schemes, no matter where they operate.”
As the investigation continues, it remains to be seen how many more individuals will be held accountable for their roles in this massive Ponzi scheme. One thing is certain, however: the victims of this scheme will never see their hard-earned money again, and the perpetrators will face the consequences of their actions.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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