Ex-football club chairman jailed in £4m Ponzi fraud

Two men have today been jailed for their involvement in an illegal investment scheme that defrauded hundreds of victims out of millions.

Christopher Toynton, the ex-chairman of Spalding United was sentenced to 54 months in prison, while Ross Gibson of Eve Dudley, was jailed for 53 months.

Both men were sentenced at Lincoln Crown Court on Friday (May 12).

Detectives from the Economic Crime Unit (ECU) began investigating in the spring of 2019 following complaints of suspected fraud connected to the Lottery Syndicate Club in Spalding.

The Ponzi scheme operated between late 2017 and 2019 and had several hundred members from across the country, including Lincolnshire and Cornwall. Some of the syndicate’s members also lived abroad.

Toynton acted as the scheme’s sole director, and was responsible for all administration, financial transactions and contact with investors.

He also appointed Gibson to be the scheme’s trader, despite his lack of professional experience or qualifications in financial investment or market trading.

Gibson acted as an unauthorised trader and falsely claimed that trading was a success despite no profits being made.

Around £4m was invested in the scheme, most of which were either lost during trading or pocketed and misused by Toynton and Gibson for their own personal gain.

It was revealed Toynton spent £134,000 of investor’s money on luxury cars and holidays, while Gibson spent £400,000 on holidays and designer watches.

Victims were led to believe that the scheme was legitimate and that their investments were safe. Toynton also assured victims that the scheme was low risk and that they could withdraw funds at any time.

Although some money was sent back to victims to add credibility to the scheme, the high returns they were initially promised never materialised.

The scheme eventually collapsed in the spring of 2019. However, Toynton continued to perpetuate the scheme’s success until his and Gibson’s eventual arrest in July 2019.

Toynton and Gibson both entered a not guilty plea to all charges when they appeared at Lincoln Magistrates’ Court on 9 December 2021.

Proceeds of Crime Act (POCA) confiscation proceedings will take place after sentencing.

PC Phil Gidlow, who led the investigation for ECU, said: “This verdict is a culmination of years of hard work by our dedicated investigators in the Economic Crime Unit and only made possible due to the support of the victims.

“Fraud is a despicable crime, undermining our basic trust in others. As a result of this scam, the victims not only suffered huge financial losses, shattering their current financial position and plans for the future, but also caused some to have mental health and relationship problems.

“I hope this case reflects that we are determined to investigate and prosecute the perpetrators and that the victims feel some justice has been achieved.”