A fraudster who swindled £11.5 million from 115 victims in a Ponzi scheme targeting retired people has been jailed. Steven Long, 59, of Stowmarket, Suffolk, was sentenced to eight years and four months at Southwark Crown Court on Friday. Co-defendant Raymond Simpson, 79, who lives in Portugal and did not attend trial, was sentenced to five and a half years in absentia, with a warrant issued for his arrest.
How the Scheme Operated
The offending came to light after Long's wealth management business group Universal collapsed in 2018. Homeowners near retirement age were lured by Universal's marketing seminars, which offered to manage and protect trust funds for inheritance planning. Prosecutor Charlene Sumnall told the court that £11,574,814 of client money was lost by Universal, for which Long is ultimately responsible. Simpson was charged with defrauding £785,380 through investments and £615,000 by buying land in Spain.
Judge's Condemnation
Judge Gregory Perrins said: 'Your offending has taken a very heavy toll on the lives of so many and you should feel deeply ashamed.' He added that Long 'abused the trust' of particularly vulnerable people 'to keep your business running and so you and your family could enjoy all the trappings of wealth.' The judge noted that many victims would find it a 'bitter irony' that Simpson's Portuguese home was paid for by a house sale and his wife's inheritance.
Lavish Spending of Stolen Funds
Long used trust money to pay business overheads, staff salaries, and fund a luxury lifestyle. He put down a £300,000 deposit on a Grade-II listed house worth about £3 million. The fraud funded luxury holidays, a timeshare property, and a purchase at a diving shop in Mexico, including a £74,000 payment to 'Mayan Resorts and Vida Vacations.' A total of £800,000 was sent to his wife Melanie Long, who also paid nearly £50,000 to Vida Vacations and bought a Spanish villa for £170,000, a Land Rover, and paid five annual tax bills with the cash.
Victim Impact
David Cunningham lost all £140,000 of his late wife's savings. In a victim impact statement, he said: 'I feel ashamed, guilty about my incompetence, suspicious of people, unhappy, tense, saddened, nervous about making most decisions. I have completely failed my wife and children, which I cannot undo.' He added that Long 'sensed an easy prey' and that he had considered suicide, but his daughter intervened. The judge noted there are 115 direct victims but 'behind each and every one' is a family and others who have suffered.
Financial Shortfall and Sentencing
Universal turned a profit until 2013, but there was a £6 million shortfall between legitimate income and expenses from 2014 to 2018. Long admitted two counts of fraud by abuse of position between 2008 and 2018. Simpson was convicted in his absence of two counts of fraud by abuse of position. Judge Perrins said Simpson had assisted Long by using money from trust accounts for 'increasingly reckless investments.'
