South Shields fraudster Stephen Rae jailed for defrauding investors of life savings and pensions

A financial advisor who stole almost £2 million from victims by selling bogus investment plans has been jailed.

Stephen Rae was convicted at Newcastle Crown Court in June this year, after admitting he defrauded 16 different clients between June 2014 and January 2016.

The victims all believed they had been investing their hard-earned money and pensions into a range of legitimate financial schemes – but never saw their profits materialise.

In 2015, two victims reported Rae to Durham Constabulary and Action Fraud after they sent him six-figure sums to invest.

No returns materialised and both women reported Rae after he repeatedly ignored their calls and correspondence.

When Action Fraud referred the case to Northumbria Police, specialist officers investigated and executed a warrant at Rae’s home in South Shields.

They found a range of luxury cars, including an Aston Martin Vanquish parked up at the property.

Rae’s laptop and devices were seized and on them were financial records of 113 clients – as well as banking records confirming clients had invested almost £2.8 million with him.

All clients were contacted to establish if there were any further victims, but only 14 individuals responded and all reported substantial losses.

When Rae was brought in for questioning in January 2018, he refused to comment in interview and would not assist inquiries in any way, police said.

He was later charged and convicted.

On Friday 8 December Rae, of King George Road, in South Shields, was sentenced to seven years in prison at Newcastle Crown Court.

'People have lost their full pension and life savings'

Speaking after the sentencing, the officer in charge of the case, Detective Constable Craig Tomlinson said: “Finally we have justice for Rae’s victims.

"This sentencing marks the end of a long, drawn out process for them and I hope they can now begin to move forwards with their lives.

“No custodial sentence will be able to take away the devastating impact his greed and his lies have had on the victims.

"The impact of his actions means a number of hardworking and trustworthy people have lost their full pension and life savings – and the betrayal and breach of trust will no doubt affect many of the victims for years to come.

“Fraud has a profound impact on victims, made even worse when the perpetrator is supposed to be a trusted member of the community, and they abuse that power.

“This was a complex case and I would like to praise the victims who came forward and instigated action against Rae. I would also like to thank the team of officers, staff and criminal justice partners for their help in proving crimes like this don’t pay.”

Det Con Tomlinson said the force would "not tolerate" such criminality and vowed to bring offenders before the courts.

He urged people investing to do so with caution.

“If you plan on investing, please do your research and make sure that any advisor or company you plan on using is registered with the Financial Conduct Authority (FCA) and their contact details match up," added Det Con Tomlinson.

"If the website, number and address don’t match, don’t invest. You can also check the FCA warning list of firms to avoid and seek impartial advice.

"We’d also advise people are also cautious when parting with large sums of money. And if you suspect foul play, report to Action Fraud immediately.”

To report a fraud visit Action Fraud website or call them on 0300 123 2040. If a crime is in place right now, call 999.

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