Jailed: ‘Ponzi’ fraudster accountant who spent thousands on adult websites

For more than a decade individuals and organisations trusted Bentham accountant Geoff Langdale to invest their money, but instead he squandered thousands of pounds on adult websites, including a Russian dancer’s webcam, and used clients’ cash to keep his own business going.

Several of the 63-year-old’s victims attended Bradford Crown Court today to see him jailed for the scam which had resulted in an outstanding loss of just over £1.1 million.

Police say his victims lived in Bentham, Ingleton, Lancaster, Doncaster, Penrith, Windermere, Preston, Buxton, Colwyn Bay, Bury, Carnforth and Felixtowe.

Langdale, of Springfield, Bentham, near Skipton, will now face further investigation under the Proceeds of Crime Act in an effort to recoup some of the stolen money from any of his remaining assets.

Prosecutor Alasdair Campbell told the court how Langdale, who was struck off as a chartered accountant in 2009, dishonestly obtained more than £2.3 million from would-be investors over an 11-year period, but about £1.1 million had been repaid through the scheme.

But Mr Campbell said Langdale had been “robbing Peter to pay Paul” and after his criminal activities came to light early last year he was eventually arrested in June 2013.

Mr Campbell said Langdale had been operating a classic so-called “Ponzi” scheme in which he promised investors a good rate of interest and he had created documentation which was intended to satisfy clients that their investments were safe.

The court heard how Langdale spent £6,000 on adult websites during 2009 and 2010 and Mr Campbell said he had also withdrawn nearly £130,000 in cash.

“The Crown will never know where that money has gone,” said Mr Campbell. “It was not spent on flash cars or valuable paintings.”

Mr Campbell said one of Langdale’s victims was the widow of a golfing partner.

The woman, who has since died herself, “invested” more than £130,000 and was left completely devastated by the loss of their hard-earned money.

During his police interview Langdale said his wife and staff were not aware of the fraud and Mr Campbell said the defendant’s wife had subsequently filed for divorce.

Langdale, who had no previous convictions, cooperated fully with the police inquiry and pleaded guilty to charges of obtaining money transfers by deception and fraud.

His barrister Christopher Evans said Langdale’s reputation was now in tatters and he accepted that he would deservedly leave prison penniless.

Mr Evans said Langdale regretted his behaviour and had taken steps to ensure that his creditors would get as much money back as possible.

Judge David Hatton QC told smartly-dressed Langdale that the individuals and organisations had been targeted by him and they had invested their trust in him as an honest, responsible and reliable professional.

“You were in the event none of those things,” said the judge. “Over the period of 11 years you dishonestly obtained £2.3 million and there is to this day a loss of just over £1 million. Monies that those individuals and institutions badly need.”

The judge said Langdale had fabricated documents to keep his victims at bay and it was a sophisticated scheme which was dishonest from the outset.

“Funds were used to satisfy your own needs and your own proclivities. Some of it was used for your own business expenses. Other funds have simply disappeared in cash one knows not where.

“I’ve read a number of statements from your victims. In many, if not most cases, there has been financial catastrophe and also emotional devastation.”

Detective Sergeant Andy Kenyon of North Yorkshire Police’s Major Fraud Team, said: “Geoffrey Langdale was a trusted accountant in a small community and used his position to commit fraud. His dishonesty has had a lasting impact on many victims whose financial future has now been left in ruins and they are now facing financial hardship as a result of these crimes.”

Debra Chan, Senior Crown Prosecutor in the CPS said, “Over a period of 11 years Geoffrey Langdale abused his position as a trusted accountant while his victims, reassured by the reputation of his longstanding accountancy practice, were encouraged to invest money in his fraudulent “Ponzi” scheme.

“He fooled genuine investors by producing fraudulent documents and forging company logos to imply their money was safe. Instead of investing his clients’ money as promised, he used more than £1m to prop up his own companies including investing in a chemical company that later collapsed. As his debt spiralled out of control, he simply encouraged more and more people to invest in the scam.

“This conviction highlights Geoffrey Langdale’s dishonesty and the blatant disregard for the welfare of his clients.”