SFO recovers £1m from UK’s biggest boiler room fraud

The SFO carried out a seven year investigation – codenamed Operation Steamroller – into the fraud.

The probe led to the successful prosecution of Australian national and fraud mastermind Jeffrey Revell-Reade in 2014. He was sentenced to nine years and six months in prison and given a total confiscation order of approximately £7.5m.

Since 2016, the SFO has been pursuing the enforcement of Mr Revell-Reade’s confiscation order. Over £3m has been returned to the 200 victims so far.

Operation Steamroller was conducted with the assistance of the City of London Police and spanned multiple international jurisdictions.

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For the latest recovery, the SFO has now also teamed up with Spanish authorities to secure new compensation funds via the sale of a luxury penthouse apartment in the Costa del Sol.

Between 2003 and 2007 UK investors were conned out of around £70m under a boiler room scheme masterminded by Mr Revell-Reade. Bogus sales teams operating from Madrid used high pressure sales techniques to sell worthless shares in US-listed companies. 

Investors bought the shares, the sale of which was restricted for 12 months, and when they came to sell they found their shares to be worth nothing. Most were shell companies or companies not operating at all.

After being informed of the latest compensation payment the SFO said one victim wrote to the SFO to say: “I dropped a tear. Being caught up in that boiler room scam has had, and continues to have, an impact on my life. I don’t think anyone can even begin to imagine the overall impact on the individual that these frauds cause.

“I am so grateful to the SFO for pursuing and continuing to pursue these criminals across the different countries.” 

Emma Luxton, head of proceeds of crime and international assistance at the Serious Fraud Office, said: “This result demonstrates our tenacity and commitment to ensuring victims receive the justice and compensation they deserve, no matter the complexity of the investigation or how many years have passed since the crime was committed.” 

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