Derbyshire investment fraudster hit with 15-year bankruptcy restrictions

A former investment firm director from Derbyshire has become subject to stringent bankruptcy restrictions after duping people into handing over money in a £9m investment fraud.

Andrew Paul Bird, of Quarndon, was handed the maximum 15-year restriction after the Official Receiver discovered he had knowingly misled investors and exposed them to the risk of losing money for his personal gain.

Robin Dury, official receiver at the Insolvency Service, said: “Andrew Bird purposely deceived people who trusted him into handing over money for what they believed to be secure investments.

“We are pleased that these lengthy Bankruptcy Restrictions will prevent him causing further harm to people, by curtailing his business activities for a long time.”

Bankruptcy Restrictions prevent Bird acting as a company director without the court’s permission, or borrowing more than £500 without declaring that he is subject to the restrictions. They also prevent him taking up certain roles in public organisations.

Bird was first made bankrupt in November 2016, and later became subject to a five-year interim Bankruptcy Restrictions Order (BRO), which was imposed by the courts in January 2018 to prevent him causing further harm while he awaited a criminal trial for his fraudulent actions.

The interim order was made on application by the Official Receiver, following an investigation into Bird’s affairs as a bankrupt. The investment scheme purported to use money from investors to trade on a trading platform and return a profit on their investments.

But between 1 January 2011 and 31 August 2016 Bird knowingly gave false information to investors, for his own personal gain. Bird received an eight-year jail sentence at Nottingham Crown Court on 1 August alongside his co-conspirator Christopher Walton.

The Official Receiver secured a signed undertaking by Bird, in which he agreed to be bound by the bankruptcy restrictions until 24 January 2033 – extending them for a full 15 years, from the date of the interim order in January 2018. The Secretary of State for Business and Trade accepted the undertaking on 15 July 2024.

Bird did not dispute that he had acted dishonestly by misleading 13 different parties – including both individuals and couples – to invest in a scheme which exposed them to potential losses. His actions were a breach of the Fraud Act 2006.

Christopher Walton

Bird and Walton carried out the fraud over the course of six years – taking huge sums from friends and family who they duped into investing hundreds of thousands of pounds – when in reality the money was never put into the investments and was used to pay back other investors to keep their scam running.

The pair met at Horsley Lodge Golf Club in 2005 when Bird was running the Anglo American Equities company. Walton, a former bank manager, had heard of Bird’s reported success in trading and investment and the two then joined forces.

From 2010 to 2016 they claimed to be investing the money on the Chicago Mercantile Exchange (CME) but in reality, a significant amount of the money was never invested at all.

Bird and Walton convinced friends and family, many elderly and vulnerable, of the returns they could expect and lied to them about the level of risk the investments could see – playing on the fact that Bird had never lost money trading.

Once investors had given them their money, they received documents designed to persuade them that their investment was doing well and encourage them to invest further. However, the documentation was falsified and the majority of the money that Bird and Walton took from people was not used to trade at all, but to pay other investors back and fund quarterly ‘returns’ payments in what is known as a Ponzi fraud.

The scheme collapsed in August 2016 after running out of new cash, with Bird and Walton having collected almost £9 million.

The investors knew and trusted the men, with some investing their life savings or pension funds into the schemes. Some even sold their homes so they had the money to invest in the fund, with many of the victims being elderly or vulnerable.

The matter came to light after the victims were told that all of their money had been lost.

In a victim impact statement, one of those who lost money said: “The investment was to help with my impending retirement.

“It upsets me as some of my relatives and friends had invested and this has changed their lives dramatically. So many other victims that I know have struggled to get by. We all put our faith in Chris, Andrew and the company.”

Another said: “The financial impact has been massive. We had worked very hard and saved this money over many years, intending to use it to help our children buy their own home and help with our retirement plans.

“There has also been the emotional toll of losing so much money leading to lots of anxiety and stress. We have also had to sell our family home. The financial loss of losing so much money is substantial but the emotional and psychological damage is equally significant.”

Bird and Walton were arrested and subsequently charged with fraud by false representation and carrying out a regulated activity whilst not authorised.