Convicted fraudster Kevin Foster was today jailed for ten years for running an unauthorised investment business and for stealing investors' funds through his £34 million KF Concept scheme.
Fifty-two year old Kevin Foster, who devised and ran a wholly dishonest scheme that during its operation attracted £34 million from investors over an approximate three year period, was found guilty at Harrow Crown Court on 9 March 2010. He has since been held in custody for sentencing today in relation to six counts under the Theft Act 1968 and eight counts under the Financial Services and Markets Act 2000 ("FSMA"). The loss to investors is accepted to be over £17 million.
Foster's methods of promoting his scheme were notable in that he staged lively road shows around the country, many of them in South Wales. The Serious Fraud Office ("SFO") press release of 9 March outlines the case. There was both national and local media reporting of the conviction at that time.
What could not be made public until now was that there was a first trial in which the first trial judge stayed the FSMA counts. However, the SFO successfully appealed and a re-trial proceeded under a different judge (i.e. HHJ Nic Madge).
Prosecution chronology
Kevin Foster was charged in May 2007 following an investigation by the SFO with the assistance of Kent Police into the KF Concept and related schemes. Kent Police had already been working with the Financial Services Authority ("FSA") on an investigation commenced by them. The charges consisted of eight counts of theft under the Theft Act 1968 and eight offences under FSMA 2000, including five offences of dishonestly concealing material facts.
The case was sent to the Crown Court from Maidstone Magistrates' Court and the defendant entered pleas of Not Guilty to all 16 offences on 17 October 2008 at Kingston Crown Court.
A first trial was heard before trial judge HHJ John Samuels QC at Kingston Crown Court between 16 March 2009 and 8 June 2009.
During the trial the court heard evidence and legal argument in relation to earlier investigations by the FSA and Kent Police as well as the subsequent SFO investigation. The trial judge ruled that the FSMA counts be stayed from proceeding which brought a halt to the trial and the judge discharged the jury. The SFO successfully appealed this stay, with the Court of Appeal ruling that the trial judge's conclusions amounted to an error of law. The judgment can be found on the following link; http://www.bailii.org/ew/cases/EWCA/Crim/2009/1639.html
The second trial was heard before HHJ Nic Madge at Harrow Crown Court from 18 January to 9 March 2010. The jury found the defendant guilty of all of the FSMA offences and six of the Theft Act offences, including stealing almost £1.5 million of investors' money to pay off personal judgments and debts, and buy and improve properties for himself and his family.
Sentence
Cumulatively the defendant was sentenced to a total of ten years. His Honour Judge Nick Madge described the fraud as being a substantial and deliberate course of conduct that was sophisticated and elaborate.
Bankruptcy trustees
Any individual who believes he/she is a creditor of Kevin Foster and his schemes should contact the bankruptcy trustee to register their interest. Mr Nedim Ailyan of Abbott Fielding at Nexus House, 16 Hatherley Road, Sidcup, Kent DA14 4BG
Serious Fraud Office, Elm House, 10-16 Elm Street, London, WC1X 0BJ
Press Office tel: 020 7239 7000/7004 or mobile: 0781 807 6688
Main switchboard tel: 020 7239 7272
press.office@sfo.gsi.gov.uk - or via - www.sfo.gov.uk
