The kingpin of a ‘sophisticated and substantial’ money laundering fraud which spent millions of pounds of vulnerable victims’ cash has been jailed.
Organised crime group boss Jonathan Arafiena, 35, lived a champagne lifestyle of expensive cars, luxury holidays and penthouse apartments paid for by investors who handed over their life savings for worthless shares.
Around £11.5 million of their money was subsequently laundered through dozens of fake accounts, including some registered in the unwitting victims’ own names.
Arafiena, who is said to have controlled accounts worth £3.3 million, was handed a prison sentence of five years and nine months today, as victims – many of them elderly and vulnerable – described the ‘shame, embarrassment and devastation’ of losing their life savings.
At least one victim was declared bankrupt as a result, while others felt suicidal, saw their retirement dreams ended and marriages collapse, Southwark Crown Court heard.
Jonathan Arafiena, 35, conned his victims out of their life savings for worthless shares
The court heard how Arafiena spent victim’s money on high-end goods including a £205,000 Rolls Royce (pictured)
One of a number of luxury watches Arafiena owned. At least 350 people across Great Britain are known to have invested in the scam, although police believe others have not come forward due to embarrassment or having died since the swindle began eight years ago
The court heard Arafiena was ‘instrumental’ in spending money from a so-called boiler room fraud, where a legion of cold callers coaxed would-be investors into parting with their personal fortunes on the promise of handsome returns.
But victims never saw their money again, and only twigged that their cash had been stolen when they were suddenly unable to access their accounts.
At least 350 people across Great Britain are known to have invested in the scam, although police believe others have not come forward due to embarrassment or having died since the swindle began eight years ago.
Prosecutor Karen Robinson said Arafiena was heavily involved in the ‘operation and continuation of the money laundering scam’ which spent the ill-gotten gains.
She said that he was ‘not someone who otherwise had the ability’ to afford the lifestyle he was living ‘by legitimate means’.
Arafiena, of Vauxhall, was finally stopped in 2019, when several victims contacted Action Fraud, and City of London Police began investigating.
The prosecutor said he had been shelling out vast sums to rent swanky apartments, including one in south London well known for its swimming pool ‘bridge’ which cost more than £110,00 a year, and spending victims’ money on high-end items including a £205,000 Rolls Royce, £330,000 of gold bullion, and £14,000 on concierge services.
He also spent £250,000 to pay off his parents’ mortgage, the court heard.
Arafiena had been using a series of fake names including John Mayer and Christian Ocean to carry out his crimes but was caught when detectives used mobile phone data and airline passenger manifests to link him to the fraud.
It is understood the scam involved dozens of shell companies, often fraudulently set up using investors’ identities, to launder money.
Not a single penny was actually invested, although around £3.3 million passed through Arafiena’s personal bank account.
The court heard Arafiena, who has a previous conviction for money laundering more than a decade earlier, was assisted by 43-year-old website creator Kofi Ofori-Duah, of Wanstead, and 35-year-old Ashlee Morgan, from Lambeth, Arafiena’s ‘right-hand man’.
Police said the duo also got a cut of the victims’ money.
All three pleaded guilty to concealing, converting, transferring or removing criminal property.
Kieran Vaughan KC, defending Arafiena, said his client was ‘deeply remorseful and bitterly ashamed’ and suggested there were others involved in the scam who had not been convicted.
Arafeinia vast collection of luxury goods. Not a single penny was actually invested that he scammed, although around £3.3 million passed through Arafiena’s personal bank account
People swimming in the swimming pool bridge between two apartment blocks in Embassy Gardens (stock image). Arafiena owned a flat in the apartment building in south London which cost more than £110,00 a year
He said Arafiena ‘was engaged in a legitimate business… but became involved with people which led him to being involved’ in the scam.
Rhodri James, for Ofori-Duah, said his client felt ‘shame and disappointment in himself’. He was handed a two-year suspended sentence.
And defence counsel William England said Morgan felt ‘genuine remorse’ that what he did was ‘wrong’. Morgan was handed an 14-month suspended sentence.
Simon Styles, financial investigator with City of London Police, said the prosecution helped give a voice to victims across the country.
He said: ‘This lifestyle was beyond the dreams of 99.9 per cent of the public, they invested their money in good faith and so it was a real kick in the teeth to see what their money was being spent on.
‘I’ve been in the police for more than 40 years and this fraud was right up there as one of the biggest, and Arafiena was the kingpin in this case.’
Sian Mitchell, from the Crown Prosecution Service, said: ‘The money that these criminals laundered came from a highly sophisticated and professional fraud that has devastated the lives of hundreds of hard-working people, who were tricked into investing in bogus companies.
‘Victims have had their lives and future plans irreparably damaged, with hopes for retirement or leaving an inheritance for children and grandchildren destroyed.’
She said the CPS will now legally pursue all three defendants to strip them of the proceeds of their offending.
