GANG of “boiler room” fraudsters who swindled £10m from elderly investors were caught when they returned to Tyneside from their high life on the Costa del Sol, a court has heard.

The swindlers, including four from the North East, lived in adjoining Malaga apartments and bought Rolls Royce, Bentley, Ferrari, Maserati and BMW vehicles after duping UK investors into parting with their savings for worthless shares.

In a co-ordinated swoop, City of London Police arrested the ringleaders as they visited family in the North East for Christmas and New Year.

The gang targeted their trusting investors during the two-and-a-half year “boiler room” con – when bogus stockbrokers call ordinary private traders to pressure them into buying non-existent shares.

Mark Brannan, 28, of Arlington Avenue, Kenton, Newcastle; Sam Hamed, 25, of Byland Court, Washington; Dean Hamilton, 26, of Cleeve Court, Washington and Scott Henderson, 31, of Morgan Street, Sunderland, all admitted fraud offences at Harrow Crown Court in London.

Hamed and Henderson pleaded guilty to conspiracy to defraud and conspiracy to money launder and Brannan and Hamilton pleaded guilty to conspiracy to defraud only.


The charges came after a long investigation, codenamed Soundwave. Raids were carried out on the defendants’ homes in January last year.

Prosecutor Peter Stage said: “The money went into a black hole. Investors were sending money after money after money across.”

The ringleaders were arrested on December 30, 2009. All four would cold call potential victims and persuade them to invest in fake shares with promises of huge returns.

The gang were hired by George Abrue – who has since been extradited from Sweden – a fraudster with a string of aliases who used fake identity documents.

The sales team pocketed 25% of all sales, with managers earning an extra 10% and they were supported by convincing websites, glossy brochures, fake share certificates and other bogus company documents.

A total of 138 defrauded investors have given statements to police – including a ‘Top 50’ list of the biggest losers and one who lost over £1m.

The court also heard how they conned £78,000 life savings out of one elderly man.

Abrue, 29, of no fixed abode, and another man involved in the scam, Babatunde Aluko, 29, from Surrey, pleaded guilty to conspiracy to defraud and conspiracy to money launder.

Anton Deach, 25, of Prestwich, Manchester, has pleaded not guilty to conspiracy to defraud and conspiracy to money launder and his trial is continuing. All involved in the con will be sentenced after Deach’s trial.