Back in 2017, Biglaw firm Locke Lord was hit with a record-breaking fine by the Solicitors Disciplinary Tribunal for the actions of one if its London-based partners, Jonathan Denton. The ethics tribunal found Locke Lord failed to stop Denton’s “dubious” investment scheme that he ran while at the firm — and allowed a “a certain mixing” of Denton’s roles as director of the investment scheme and as law firm partner.
But that wasn’t the end of the matter. As reported by RollOnFriday, the North Yorkshire Police got involved — and uncovered a Ponzi scheme.
Police uncovered complex ‘Ponzi’ investment schemes, similar to ‘pyramid’ schemes, which lured investors, promising huge returns. The arrangement paid profits to early investors using funds from more recent investors.
Denton had been involved in promoting one of the dodgy schemes with a former financial adviser, Simon Oakley. In a trial in January this year, the court heard that Oakley was the “architect” of the original Ponzi scheme, along with Denton.
The investors believed they were dealing with “honest, law-abiding, professional people,” and that they were investing their money “in a safe, virtually risk-free scheme which would net them a large return,” said the police. However, their trust was “abused”.
Many of the victims, who were investing their pensions and life savings, lost everything they had put into the scheme. The effect was “devastating both financially and personally,” said police. Around £30 million in total was believed to be lost.
All told, seven people were convicted for their role in the financial fraud. Denton received the harshest penalty, and will serve 15 years behind bars.
The Head of Economic Crime at North Yorkshire Police, Janine Mitchell, said: “This investigation was a herculean effort and the guilty verdicts and lengthy jail terms given to many of the defendants are a testament to their determination to secure justice.”
“The frauds investigated as part of this operation didn’t just target wealthy investors,” she continued. “Some of the victims were elderly and vulnerable, and others were working people like plumbers, carpet fitters, postal employees and even a retired police officer.”
Earlier: Biglaw Firm Hit With Record Fine For Failure To Prevent Partner’s ‘Dubious’ Scheme
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @Kathryn1@mastodon.social.
