Internet conspiracy to defraud

TWO directors of a Llanelli and Nottingham-based internet company have been sentenced for conspiracy to defraud.

Michael Dean Taylor aged 45, of Cwrt Naomi, North Dock, Llanelli, and 30-year-old Joanne Laura Marston, who lives in Nottingham, appeared at Swansea Crown Court on Friday for sentencing after having pleaded guilty on a previous occasion to the offence.

The case was brought by Carmarthenshire County Council after a four year investigation by the Trading Standards Service.

Andrew Davies, for the prosecution, said that Taylor was a co-founder of the company Tenretni – Internet spelled backwards – in 2003 but it was dormant until 2007 when it began to market affiliated websites on e-bay.

Tenretni was selling the websites and a training package so that people could undertake the work of affiliate marketing, promoting a product on their website for commission.

The scam involved promising large monthly incomes to people who invested between £15-30,000 each. The incomes promised never materialised and customers would be encouraged to buy additional websites to increase their earning potential.

The victims would then be encouraged to become investors in the company believing they were purchasing a one third share while the defendants were selling shares to as many people as they could convince to invest. The defendants would befriend people pretending to be fellow investors happy to sell part of their investment to them.

Mr Davies said that Marston was originally a victim and had bought websites from Taylor who then persuaded her to join the company. Prospective customers would be lured to South Wales and shown a luxurious lifestyle with the promise that they could achieve the same.

Dissatisfied customers complained and the company was investigated by Carmarthenshire County Council’s Trading Standards Service leading to the prosecution.

Mr Davies described the impact of the scam on its victims. One victim was bankrupted and had his home repossessed, another suffered depression and lost her family home, and another narrowly avoided bankruptcy. Many of the victims were vulnerable in terms of age, disability and finances.

He said the confidence trick brought in £197,500 (about £128,000 of it after Marston joined the company), of which £26,050 was refunded making a profit of £171,450. The money had been spent on hotels, restaurants and leased luxury cars and had gone.

John Hipkin, for Taylor, said he had not originally intended to be dishonest and had no previous convictions for dishonesty.

His alcoholism had affected his behaviour but his time remanded in custody had saved his life and had a dramatic effect on him.

Ian Wright, for Marston, urged the court to impose a suspended prison sentence. She was worried about not being able to go home to her children. She had read the reports of the impact on the victims and felt sickened. Her share of the profits had been just over £30,000.

Her marriage failed because of her involvement with Tenretni. Her ex husband was in court and had provided a substantial sum as compensation for the victims.

Mr Wright added that Marston had been infatuated with Taylor and had been corrupted by him but had since raised money for charity and done voluntary work.

His Honour Judge Huw Davies described Taylor as a conman and told Taylor and Marston: “A significant number of people lost everything that they put in. As you knew, many of these people could not really afford the investment.

“There were investors who were so desperately worried about the consequences that they became ill, chronically ill. There were investors who lost a cherished family home and investors who borrowed in order to invest at a cost they simply could not sustain and are carrying ever increasing costs as a result.

“These people were not naive, they were trusting and they put their trust in the wrong people.”

Taylor was jailed for 32 months and Marston was sentenced to 24 months imprisonment suspended for two years. She will be under supervision and will have to carry out 180 hours of unpaid work.

Carmarthenshire Trading Standards has secured compensation payments for the victims and the issue of compensation was adjourned by the court until Friday March 22.

Carmarthenshire County Council executive board member for public protection Cllr Jim Jones said: “This case shows the important work that Carmarthenshire Trading Standards Service does to tackle fraud. This case is the result of a four year investigation. It involved a considerable sum of money and has had a devastating impact on the victims as the judge’s comments show.

“We are pleased that this case has been brought to a successful conclusion and that the victims are receiving some compensation for their losses.”