Investors who put their money into a multi-million pound trading scheme “simply did not want to miss out,” a jury was told.
Christopher Toynton, 73, denies ten charges of fraud relating to his alleged involvement with the Spalding based Lottery Syndicate Club.
Prosecutors claim Mr Toynton represented to potential investors that the scheme was safe and low risk, and also spent £130,000 of the funds on himself.
Jurors heard how funds of £3.9 million were invested by members but police became involved after a bank froze the account of the scheme’s trader, former Spalding man Ross Gibson.
Mr Toynton, of Horseshoe Road, Spalding, chose not to give evidence during the two month trial at Lincoln Crown Court.
Julian Jones, prosecuting, has likened the Lottery Syndicate Club to a Ponzi or Pyramid scheme where investors were paid out from new members joining the syndicate.
But addressing the jury in his closing speech, defence barrister James Bourne-Arton, suggested “greed” was at the heart of investor’s decisions.
“They simply did not want to miss out because they believed Mr Toynton and others,” Mr Bourne-Arton added.
“Did anyone think Mr Toynton or the LSC were financial experts?” Mr Bourne-Arton asked the jury. “I suspect no.”
Mr Bourne-Arton told the jury Mr Toynton himself was the victim of fraud at the hands of Ross Gibson, the trader trusted to invest the scheme’s money, who has pleaded guilty to his role.
Jurors were told they had to be sure that Mr Toynton knew he was being lied to by Mr Gibson, and when.
Mr Bourne-Arton said: “It is fair Mr Toynton bares some responsibility, as it was him who introduced many of the members.
“But that is very different to whether he was acting dishonestly and part of a criminal fraud.
“We know a fraud did take place. We know Mr Gibson has pleaded guilty.”
It is admitted, Mr Bourne-Arton told the jury, that Mr Toynton spent £134,000 on himself including two cars valued at £54,000.
“He clearly believed that money was his, he made a note in the ledger around the same time he bought one or two cars,”Mr Bourne-Arton added.
“He did nothing different to others who bought cars and went on holidays.”
Mr Bourne-Arton reminded the jury that this was just a very small amount of £3.9million that went through Mr Toynton’s bank account.
“If he knew it was fraud surely he would have taken more,” Mr Bourne-Arton said.
Mr Bourne-Arton said it was accepted that people lost money, but said this did not mean Mr Toynton had acted dishonestly.
Toynton denies five charges of fraud by false representation and five charges of fraud by abuse of a position of trust.
Jurors have been directed to clear Mr Toynton of three other charges.
Gibson, 27, of Eve Lane, Upper Gornal, Dudley, has already pleaded guilty to three offences on dates between 1 November 2017 and 31 March 2019.
He will be sentenced at the conclusion of the current trial.
The trial continues
