FIU explains ‘anatomy of a fraud’
22.12.2009
The Financial Intelligence Unit (FIU) has released further information about its investigation into the activities in Seychelles of Stephen Scholes and Terence Stewart.
Both men are UK citizens who last week pleaded guilty to a charge in the Supreme Court and were convicted by Judge Duncan Gaswaga of knowingly and fraudulently uttering a false document contrary to the Penal Code of Seychelles.
This false document was produced in the course of a meeting Scholes and Stewart had with a Seychelles bank.
The false document purports to be a contract between a Qatar company named Fast Trading
Group and a Spanish company called Gestion Grupo Guardian S.L.
The document suggests the Fast Trading Group was offering a “credit line” of US $900 million to Gestion Grupo Guardian S.L. with the promise of a $200 million advance. Scholes and Stewart are understood to be registered officers of the Spanish company.
The contract contained a false “resolution of Fast Trading Group” which purported to have been signed by a member of the ruling family of Qatar on behalf of the Fast Trading Group.
The Qatar authorities were alerted to the content of this document and they have confirmed to the FIU that it was false.
Similar false documents are produced to banking institutions throughout the world by people hoping to fraudulently obtain a “line of credit” from a financial institution. The money credited disappears quickly before the fraud is detected.
Banks are often deceived by these documents and can incur huge financial losses as a result.
The FIU confirmed that both men had been facing another 10 charges each, but based on their plea of guilty to one of the charges it was decided, in conjunction with the Attorney-General’s Office, to withdraw the other charges.
Judge Gaswaga, in convicting both men of the charge, said he was aware of the other charges and viewed the criminal activity of Scholes and Stewart as very serious. The judge stressed to both men that they could go to prison on the charge for which they were convicted.
However, because of their plea of guilty and the remorse shown, he imposed a large fine, which was payable forthwith. They were represented in court by Frank Elizabeth and Basil Hoareau.
The FIU also confirmed that Scholes was interviewed on April 7, 2009 by the Financial Services Authority (FSA) in the UK in connection with its investigation into a UK accountancy company that had an involvement with Scholes.
The FSA’s investigation relates to the disappearance of £4 million sterling from the accountancy company. An estimated 400 innocent victims have suffered losses due to the disappearance of this £4m between January and February 2009 and this loss, which is suspected of having resulted from criminal activity, is also being investigated by the City of London Police.
Both Scholes and Stewart have left Seychelles following payment of their fine and are
believed to be on the island of Tenerife in the Canaries.
The FIU can confirm that their investigation of Scholes and Stewart was an international criminal investigation conducted in conjunction with the Seychelles Police and authorities in the UK, Qatar, Italy, Spain and Germany.
Key components of this international investigation are ongoing, and the findings of the Supreme Court have now been circulated internationally via Interpol.
The FIU is committed to defending Seychelles by challenging the financial criminality
threatening the economy and playing its part in promoting Seychelles’ reputation as a
financial services centre of integrity.