Financial Adviser Convicted in Multi-Million Pound Investment Fraud Scam

In a recent development, a financial adviser named Stephen Rae has been convicted for his
involvement in a widespread investment fraud scam. Rae, who pleaded guilty to 16 counts of fraud
against 16 separate victims, had pocketed nearly £2 million from unsuspecting individuals. The
crimes were committed between June 2014 and January 2016, and the victims were promised
significant returns on their investments but never received them.

Unveiling the Scheme:

The fraudulent activities of Stephen Rae came to light when two victims, who had entrusted him
with substantial six-figure sums, reported him to the authorities after their investments failed to
materialise. Both victims had been promised handsome returns and were left devastated by the loss.
Upon receiving the reports, the case was referred to Northumbria Police by Action Fraud, leading to
a thorough investigation into Rae’s activities.

The Investigation into Stephen Rae and Evidence:

Specialist officers conducted a search at Rae’s residence in South Shields, during which they seized
his laptop and other electronic devices. Further examination of his laptop revealed financial records
belonging to 113 clients, highlighting the extent of his fraudulent activities. His banking records
confirmed that approximately £2.8 million had been invested with him. The police reached out to all
clients to ascertain the number of victims, and 14 additional individuals came forward, all reporting
substantial losses and a similar pattern of behaviour.

In January 2018, Stephen Rae was taken into custody for questioning. However, he chose not to
cooperate with the investigation, refusing to provide any information. Despite his lack of
cooperation, he was charged with a total of 16 offenses. The recent guilty plea brings a measure of
justice to the victims, some of whom lost their entire pension pots and life savings. The sentencing,
scheduled for 8th September 2023, is expected to reflect the severe impact that Stephen Rae’s
greed has had on these individuals.

The Devastating Impact on the Victims:

Financial fraud goes beyond monetary losses; it inflicts emotional and psychological harm on the
victims. They not only experience financial ruin but also endure a deep sense of betrayal and
breached trust. The loss of savings and dashed hopes for a secure future can leave lasting scars on
the victims’ lives.

This case serves as a reminder that fraud can have far-reaching implications and underscores the
importance of staying vigilant while seeking financial advice and conducting due diligence on
investment opportunities.

The conviction of Stephen Rae in the investment fraud scam brings some solace to the victims who
fell prey to his deceitful schemes. The case serves as a cautionary tale about the devastating impact
of financial fraud, not just in terms of monetary losses but also the emotional toll it takes on
individuals. By shedding light on this case, it is hoped that awareness will be raised about the
importance of exercising caution and conducting thorough research when dealing with financial
matters. It is crucial for individuals to remain vigilant and seek advice from reputable sources to
safeguard their hard-earned money and future financial well-being.

If you feel you’ve been the victim of an investment scam, contact us immediately at
investigations@insolvencyandlaw.co.uk for a free, no obligation consultation.

Scam Alert

This message serves as a warning against potential online scams, including website scams and investment scams. Please exercise caution and conduct thorough research before engaging in any online transactions or investments. Protect your personal and financial information from fraudulent activities, and consult with trusted sources for advice.

Insolvency and Law Peter Murray is an award-winning consultancy firm specialising in Insolvency, debt purchasing and business rescue.