Mini-Madoff

…On A Smaller Scale

April 3. 2009

John Potts

John Potts defrauded 1,750 investors out of $140 million dollars, through a financial scheme that allowed him to live in luxury, off what was essentially stolen loot. He bought homes, luxury cars, jewelry and racehorses.

He has now been charged and sentenced to 15 years in prison.

To live in luxury and acclaim, then fall in disgrace, really is not worth it. People should avoid defrauding others, as when the chickens come home to roost and you have to give up that luxury lifestyle, acclaim (albeit, fake and unearned) and freedom, it is not worth it. For some, it is like going through withdrawal, having that lifestyle and one's freedom snatched.

Conman who lived life of luxury after stealing £80m savings of nearly 2000 investors is jailed

Jailed: John Potts was given five years after admitting 'a brazen fraud'

With his racehorses, fast cars, luxury holidays and expensive jewellery, John Potts seemed every inch the successful businessman. He even bought the iconic vintage Jaguar driven by John Thaw in Inspector Morse.

In reality, however, Potts was simply a conman who stole the life savings of 1,750 investors in an astonishing £80 million fraud...

Potts promised to reinvest their money in property, buying homes, many in rundown areas, and refurbishing them to sell or rent.

But scores of investors were to find that the properties, across the North-East, Yorkshire and Lancashire, had not been renovated or tenanted and were sometimes derelict or even burnt-out shells.

Potts, 60, pocketed the money himself - using their funds as his own 'personal piggy bank' - and spent it on 'extravagance and largesse'. He was estimated to have personally benefited to the tune of £6million to £8million….

Over the next two years he spent £250,000 indulging his passion for racing, even employing a racehorse manager.

He also bought the 1960 Jaguar Mk1 used in Inspector Morse for £53,000, spent £125,000 on Savile Row clothes and lavished £500,000 on cars for his employees.

He spent £500,000 in 2002 on a Christmas party - despite employing only 100 staff. One employee who won a sales competition was given a £100,000 villa in Spain, while the runners-up received a boat and £10,000 cash.

…Potts, of Sunderland, admitted conspiracy to defraud, as did Gosling and Laverick. Gosling, of Gateshead, was jailed for three years and disqualified as a company director for 15 years…

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