Ponzi accused loses appeal

Chris Donegan • Published 12 Jan 2012 13:00

A fugitive businessman at the centre of a suspected multi-million pound investment scam involving a number of victims in Fermanagh has lost an appeal against an 18-month prison sentence.

Francois de Dietrich had sought to overturn the jail sentence imposed on him for failing to disclose his worldwide assets.

The Court of Appeal dismissed his challenge. There is currently a warrant out for his arrest.

Fraud officers are investigating the multi-million pound investment scheme into which Fermanagh people poured tens of thousands of pounds of their savings.

Investors were typically told they were buying into liquidated stock that could be sold for a huge profit.

One Irvinestown businessman pumped £116,000 into the County Donegal-based scheme, which offered returns of up to 40 per cent.

So convinced was he that his money was safe that he laughed at investigators when they told him they were dealing with a suspected Ponzi - a fraudulent investment operation that pays returns to investors from their own money, or money paid by in subsequent investors, rather than from any actual profit earned.

The most notorious Ponzi in recent years was operated by American Bernard Madoff, who was jailed for 150 years for defrauding his clients of an estimated $64.8 billion.

In one three-month period alone the investment scheme operated by de Dietrich raked in 17.5 million euro.

One high street bank revealed that 20 of its customers in Northern Ireland put money into the scheme and of those 20, eight were from Fermanagh.

"And that is only the tip of the iceberg," said an investigator.

The scheme is being investigated by the Garda Bureau of Fraud Investigation and Criminal Assets Bureau in the Republic and by the Financial Services Authority in Northern Ireland.

It is believed they were alerted when de Deitrich applied for a £4 million bank draft.

The Impartial Reporter has obtained copies of High Court writs taken out by the FSA (Financial Services Authority) against de Dietrich and his company, ETIC Solutions. The injunctions restrain them from operating an investment business and have frozen assets worth up to £6.8 million.

Dozens of people on both sides of the Irish border fear they may have lost millions of pounds in investments made in liquidated stock through him.

In December the FSA secured a summary judgment against him which enabled it to obtain full control of more than £20 million in assets.

That move was separate to proceedings which led to de Dietrich being found in contempt of court for not fully revealing his global financial affairs to the FSA.

He was expected to contest the prison sentence handed down in his absence by claiming it was draconian.

Last week, however, his lawyers were granted permission to "come off record", leaving him without legal representation.

He failed to turn up for Monday's court hearing in Belfast.

A lawyer for the FSA told the court that police were in the building and "interested" in finding him.

Lord Chief Justice Sir Declan Morgan pointed out that a request for the appeal to be adjourned was refused last month.

"In those circumstances it seems we have no alternative but to dismiss the appeal," he said.

The judge directed that confirmation of the outcome should be sent to the last known e-mail addresses of both de Dietrich and a French lawyer associated with him.

Any bid by him to have the judgement set aside must be lodged within 14 days.

Legal costs were awarded to the FSA.

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This article appeared in Impartial Reporter 12 Jan 12

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