A self confessed fraudster who took a million pounds from investors in a boiler room scam has been jailed for five and a half years.
James Gillingham, 38, pleaded guilty to fraud, money laundering and perverting the course of justice at an earlier hearing. He was sentenced at Southwark Crown Court.
In a boiler room scam, investors are persuaded by cold calling and brochures that make untrue and misleading claims to put money into risky investments that are worthless or do not exist.
One victim who invested more than £35,000 said: “The investment was supposed to be our life boat, instead it was our Titanic.” The largest sum taken from a single victim was £133,900.
More than 60 people invested a total of £1 million after being told they would receive a guaranteed monthly return of between 0.5 per cent and 5 per cent, depending on how much they put in, plus an overall profit after 12 months.
Brokers acting for Gillingham cold called victims and pressed them to invest. They used bullying tactics that included pleading for money and claims that victims were wasting traders’ time. Some brokers used television character names as aliases, including Harvey Specter from Suits and Jonathan Hart from Hart To Hart.
To give the operation a veneer of respectability, Gillingham said his companies had offices in prestigious London locations such as Canary Wharf and the Gherkin. Investigators found the Canary Wharf address was a mail forwarding service and only one desk had been leased at the Gherkin.
City of London Police analysis showed Gillingham was running a Ponzi scheme. None of the £1 million was actually invested. Some victims received payments described as investment income, but no client received their full investment back or made a profit. Any money passed to victims came from capital put in by later investors.
Of the £1 million, Gillingham used £650,000 to pay staff, including more than £200,000 to himself and more than £70,000 to Sujanthan Sotheeswaran, one of his top brokers. Investors were paid £167,681 in so called dividends. The remaining £170,000 went on office costs and other running expenses.
Sotheeswaran was jailed for three years in 2024 after being convicted of fraud with two other brokers. Dennis Deegan received 32 months and Darren Peck was given 21 months suspended for two years.
Lawyers from the Crown Prosecution Service authorised charges in 2020, but Gillingham fled abroad and failed to attend his first court hearing. He was deported by the Singaporean authorities and arrested at Heathrow Airport in August last year by City of London Police officers.
Gillingham also admitted trying to pervert the course of justice by submitting a fake tenancy agreement for a rental property in an attempt to obtain bail.
Kate Hurst from the Crown Prosecution Service said: “While James Gillingham’s prison sentence brings one chapter to a close, we must remember the victims who continue to live with the consequences of his fraud. We will continue to pursue Gillingham to recover any criminal assets he has, with the intention that where possible it can be passed on to the victims as compensation.”
Financial investigator Hayley Wade, from the City of London Police, said: “James Gillingham was the driving force behind a sophisticated investment fraud that caused significant financial losses to victims. While his co defendants were brought to justice in 2024, Gillingham remained outside the UK and attempted to avoid facing the consequences of his actions. This sentencing demonstrates that no matter how long it takes, we will continue to pursue fraudsters and work with partners around the world to bring them to justice.
“Fraudsters often present investment opportunities that appear professional and legitimate but promises of guaranteed returns should always be treated with caution. We would urge anyone considering an investment to carry out independent research and seek regulated financial advice before parting with their money.”
The CPS will take Gillingham back to court under the Proceeds of Crime Act to recover any assets so that he does not benefit from his offending.
By John James
