Father and Daughter Allegedly Con Britons for $70 Million

Paul Gunter, 58, and his daughter, Zibah, 25, were arrested in Tampa, Florida, on Thursday following a joint investigation by members of US Immigration and Customs Enforcement (ICE), the US Secret Service, and the City of London Police. The pair, suspected of defrauding over 15,000 British pensioners out of at least $70 million through the sale of illegal securities, now face up to 95 years in prison and fines of $140 million if convicted. ^[1]

Investigators allege that the Gunters used “high-pressure and misleading sales techniques” to con elderly Brits into buying fake shares in over 50 dormant publicly traded companies, then using the proceeds for their personal gain.^[2]

The two have been charged by US federal prosecutors with conspiring to commit and committing mail, wire, and securities fraud, as well as money laundering, and are scheduled to appear in a Tampa court on Monday.^[3]

Numerous other persons are also suspected to be involved in various aspects of the operation, and British investigators will reportedly make more arrests in the near future for money laundering and frauds related to the scheme. Robert Wishar, Deputy Chief Inspector and head of the City of London Police money laundering unit, reported that the Gunters were arrested as part of the department’s investigation into a "mass-marketing crime scam known as boiler room fraud,” where licensed or unlicensed brokers use illegal techniques to force buyers into purchasing fake stocks. ^[4]

In his Federal Crimes Blog and Transnational Crimes Blog, Douglas McNabb has discussed the application of both US and transnational law in cases a variety of cases involving schemes to defraud.
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[1] Jacqui Goddard and Adam Fresco; Paul Gunter and daughter Zibiah face 95 years for fraud, The Times Online, March 15, 2008 (available at timesonline.co.uk).

[2] Id.

[3] Id.

[4] Id.