A FRAUDSTER formerly of Malvern who conned four people out of a total of £129,500 by claiming to run a fake oil investment syndicate has been jailed for four years.
Police said Peter Newsham, 69, used a complete web of lies during a five-year-period to gain thousands of pounds from innocent ‘investors’.
Newsham, who lived in Knoll Lane when the offences took place between 2008 and 2013, used the money he gained illegally to pay off credit card debts, buy a car and for every-day living expenses.
Four people invested in the bogus syndicate, which Newsham called ‘7C’ and claimed to run. The fake venture was said to be working with the major oil companies, with drilling taking place all over the world.
One man invested £70,000 and two men put in £19,500 and £25,000 through the first victim, who they knew.
The first victim never got the return on his money which had been promised by Newsham but received some re-payments totally £38,000, a proportion of which was passed onto the other two victims.
A fourth victim invested a total of £15,000 with Newsham and was repaid £4,244 back in ‘dividends’.
Newsham, whose current address is Moorgate Road, Rotherham, was sentenced to four years imprisonment at a hearing at Worcester Crown Court earlier today (Tuesday).
He had previously pleaded guilty to two counts of fraud contrary to Section 1 of the Fraud Act 2006 at the same court on November 16.
Police investigating the crime said Newsham even went to the extent of creating emails from made up people to make the investment scheme look realistic and proper.
DC Dave Foley, from Warwickshire Police and West Mercia Police Fraud Squad, said: “The oil drilling syndicate never existed and was a complete web of lies spun by Newsham.
“He callously exploited the trust that the victims had placed in him, even sending emails from fictitious people who he pretended were involved in the administration of funds for the bogus syndicate.
“These offences have had a considerable impact on all of the victims and in some cases on their families too. I hope that they can gain some comfort from the fact that the man responsible has been brought to justice.
“Today’s sentencing follows a comprehensive and detailed investigation by West Mercia Police’s Economic Crime Unit.
“I hope it sends out a clear message to other would-be fraudsters that they will not get away with it; we will bring them to justice too.”
Following his conviction, the Economic Crime Unit will look to establish Newsham’s available assets in order to provide some compensation for the victims of his crime.
