British Forex boss convicted for $62 million Ponzi-style fraud

According to Financial Times, a chief executive of a British foreign exchange company has been convicted in a London court for his involvement in a Ponzi-style scheme worth £50 million ($62 million), where he misappropriated investors' funds to finance his extravagant lifestyle.

The city of London Police released a statement confirming the guilty verdict against Anthony Constantinou on Monday. He was found guilty of one count of fraud by false representation, two counts of fraudulent trading, and four counts of transferring criminal property.

Operating under the name Capital World Markets (CWM), Constantinou enticed investors with promises of a 5% monthly return on their investments. Prosecutors presented evidence to the court that highlighted how CMW's luxurious City of London offices and high-profile sports sponsorship deals, including one with Premier League soccer club Chelsea, was used to lure unsuspecting investors.

(Anthony Constantinou by Chris J. Ratcliffe/Bloomberg)

Anthony Constantinou, who maintained his innocence, was initially present at the start of the trial in March. However, in mid-April, he failed to appear, and the jury was informed that he had “voluntarily absented himself.” Although he had legal representation, Constantinou chose not to testify in his defense. An international arrest warrant has been issued to locate him.

During their investigation, authorities discovered that Constantinou had squandered CWM's funds on renting a lavish six-bedroom mansion, indulging in private flights, and hosting extravagant parties. Notably, he spent a staggering £2.5 million on his wedding ceremony on the picturesque Greek island of Santorini.

In recent developments, Constantinou was arrested in Bulgaria with forged identity documents, but he was subsequently released and is currently at large, as disclosed by the court last week.

About CWM

CWM, a company that attracted investors, including individuals from the Gurkha and Nepalese communities, promised monthly returns of approximately 5 percent. However, prosecutors argued that the firm's managed account was, in fact, a Ponzi-style scheme with minimal foreign exchange trading.