Fraudster who "brainwashed" victims out of £8 million jailed for seven years

Anthony Kemp was today jailed for seven years and one month for the con which was likened to a religion in which some victims lost their life-savings and homes.

Kemp duped people into handing over large sums of money with a get rich quick promise, but the 62-year-old instead used the cash to fund his own lavish lifestyle, spending it on luxury cruises, expensive clothing and casino visits.

He also rented a multi-million dollar house in Auckland, New Zealand, on the city’s most prestigious street overlooking the harbour, which estate agents described as being "as close to heaven as life on earth permits".

The con began in 2001 when Kemp and fellow crook, Lawrence Wheeler, introduced a network of people to a pyramid scheme, telling them they could get access to high-yielding investments abroad.

Over the years, they duped 350 victims – many of whom were elderly or retired – into handing over large sums of money, with the promise that their investments would mature.

Their victims - referred to as "members" by those involved in the con, which was likened to a religion - were given various dates when their investments would mature.

Teesside Crown Court heard that the dates were repeatedly postponed with the fraudsters using various excuses - one being that the cash could not be released due to money-laundering regulations that had been imposed following the 9/11 terror attack in New York.

Another lie was that couriers who were bringing sixty million dollars from abroad in a suitcase had lost it.

Blackmailing their victims, the conmen repeatedly told them that if they went to the authorities, they would not receive a penny, and that they could jeopardise other members’ investments. Many victims also refused to speak to Durham Constabulary once an investigation had been launched, instead choosing to believe the fraudsters and continuing to send them money.

By 2005, Kemp, who is originally from Birtley, Tyne and Wear, had moved to New Zealand, claiming he was setting up trusts and bank accounts there to gain tax-free benefits.

He claimed he had an office and asked members to fund the running costs, as well as travel and other expenses through loans that would be paid back at ten, 20 or even 50 times their original payment.

He also claimed to have serious medical conditions, including throat cancer, and that he needed further payments from members to fund his treatments.

In reality he did not have an office and spent the money on luxury holidays, beauty treatments, expensive clothing and gambling.

While in New Zealand, he was jailed for three years and four months after pleading guilty to a number of fraud offences in February 2015. After serving his sentence, he was deported back to the UK where he was charged with conspiracy to defraud.

He initially denied the charge but changed his plea on the first day of his trial.

In 2016, Laurence Wheeler, 74, from Tursdale, County Durham, pleaded guilty to conspiracy to defraud and was locked up for nine years.

His son, James Wheeler, 48, from Ferryhill, was found guilty of conspiracy to defraud and money laundering through his bank accounts, and got eight years.

The con had been initially set up above a picture-framing shop owned by the Wheelers in Spennymoor, County Durham.

Detective Constable Helen Bell, from Durham Constabulary’s Economic Crime Team, led the five-year investigation, together with forensic accountant Sheila Robinson.

“I am satisfied with today’s result, which is the culmination of a painstaking five-year investigation,” said Det Con Bell.

Det Const Helen Bell

“These men groomed and controlled hundreds of victims by banning them from speaking to anyone about the con – even their friends and family – and brainwashed them into believing the fraud was genuine. These people felt that they couldn’t speak to anyone.

“Even when the police investigation started, they were told not to speak to us as they would lose everything. Some of the victims still believe that is the case.

“Instead of investing his victim’s hard-earned money, Kemp used the cash to fund his own lavish lifestyle. On one occasion he paid for a luxury cruise using funds from his UK victims, where he met a number of his Australian and New Zealand victims.” 

“These people have devastated lives. Their victims are hard-working, genuine people who had saved their money and wanted to do right by their families,” she added.

“Some have since died from stress from the fraud contributing to their ill-health, while others have lost their homes and life savings.

“It something sounds too good to be true, it usually is. These victims have sadly learnt that the hard way.

“If you ever receive an unsolicited call, email or letter offering something that sounds too good to be true, always get it checked out by someone else. If you suspect you’ve been scammed, you can report it to Action Fraud on 0300 123 2040 or call 999 if you are in immediate danger.”