Three men who persuaded thousands of investors to place their pensions into a supposed environmentally friendly forestry venture have been sentenced to prison after admitting their roles in a £70 million fraud that funded extravagant personal lifestyles.
Matthew Pickard, 55, Stephen Greenaway, 48, and Paul Laver, 48, were convicted for operating a long-running scheme that targeted savers and pensioners over a seven-year period.
More than 3,000 people invested money into what they believed was a profitable tree-planting project in Costa Rica, only for a significant portion of those funds to be diverted for the defendants’ personal use.
Promises of Ethical Investments and High Returns
The operation was run through Ethical Forestry Limited, a company that marketed itself as an ethical investment opportunity linked to sustainable forestry projects abroad.
Investors were encouraged to transfer pension funds after being promised substantial financial returns from the cultivation and harvesting of trees in Costa Rica.
According to investigators, the business relied heavily on cold-calling members of the public and presenting the investment as both environmentally responsible and financially rewarding.
However, prosecutors said the reality was very different from the picture presented to investors.
Millions Spent on Luxury Living
Court proceedings revealed that approximately £14 million was extracted from the business and used to finance lavish lifestyles for the company’s directors.
The money was spent on luxury properties, including homes in the affluent Sandbanks area near Bournemouth.
The trio also enjoyed expensive holidays across Europe, Asia and Central America, purchased a yacht, and built a collection of high-performance sports cars.
Among the vehicles linked to the defendants were Ferraris, Maseratis and Porsches.
The court heard that some of these luxury purchases were deliberately kept out of sight when potential investors visited company premises.
Judge Condemns Use of Investors’ Money
Sentencing the three men at Southwark Crown Court, His Honour Judge Alexander Milne KC criticised the defendants for treating company funds as though they belonged to them personally.
He said that rather than using investors’ money to develop the business, the directors withdrew large sums for their own benefit and spent the proceeds as though they had suddenly become wealthy through a lottery win.
The judge noted that the concealment of luxury cars from visiting investors demonstrated who was truly benefiting from the scheme.
Victims Left Facing Financial Hardship
During the hearing, the court heard accounts of the devastating consequences experienced by victims who had entrusted the company with their savings and retirement funds.
Judge Milne described the scale of harm caused as difficult to overstate, noting that thousands of people had suffered severe financial insecurity as a result of the fraud.
Members of the public attending the sentencing reacted visibly as defence arguments were presented, with some discussing how they had been forced to return to work after losing substantial amounts of money through the investment scheme.
Serious Fraud Office Investigation Exposed Scheme
The Serious Fraud Office led the investigation into Ethical Forestry Limited and uncovered evidence showing how the company operated from a Bournemouth-based call centre.
Investigators found that staff frequently used false company identities and failed to disclose their true employer when contacting potential investors.
This approach helped establish trust before individuals were persuaded to transfer pension savings into the forestry venture.
Although trees were planted in Costa Rica, investigators concluded that the project lacked any realistic plan for maintaining or harvesting the plantations.
As a result, the promised returns could never have been achieved.
Prison Sentences Handed Down
Pickard received the longest sentence, with the court ordering him to serve six years in prison.
Greenaway was sentenced to five years and three months, while Laver was jailed for four years and six months.
Together, the sentences total 15 years and nine months.
Authorities Welcome Convictions
Following the sentencing, Serious Fraud Office director Graham McNulty said the defendants had exploited investors who believed they were supporting a legitimate green investment opportunity.
He said the investigation uncovered how millions of pounds in pension savings and life investments had been misappropriated, adding that the guilty pleas and resulting prison sentences marked an important step in holding those responsible accountable.
The court was told that the company, originally founded by Pickard, may not have begun with dishonest intentions.
However, prosecutors demonstrated that the business eventually evolved into a fraudulent operation that enriched its directors while leaving thousands of investors facing significant financial losses.
A separate proceeds of crime hearing will be held at a later date to determine whether assets can be recovered from the convicted men.
