Former taxi driver who conned millions in Ponzi scheme convicted

By Philip Aldrick and Aislinn Laing

Published: 7:30AM GMT 10 Mar 2010

Kevin Foster, 51, was convicted on 14 counts of theft and deception following
a seven-week trial at Harrow Crown Court, and now faces a maximum of seven
years in jail.

The court heard how he lured investors into his “pyramid scheme” at flamboyant
roadshows held in hotels and conference centres across the country.

Foster would appear on stage to cheering and loud music - often Abba's Money,
money, money - and award prizes of cash or cars.

He presented himself as a successful gambler who could deliver clients riches
simply by betting on the football and the horses.

He claimed that for every £1 invested in his firm by the 50,000 participants
he claimed to have attracted, he made £28.50. He also said that his scheme
had £203 million in the bank.

Sceptics were won over when they saw large returns paid to other investors -
although in reality those "returns" were paid for with their
money. Those who received pay-outs were also encouraged to reinvest their
money to make more.

However, Foster's proposal was never as sophisticated as the £30 billion ($50
billion) scheme dreamed up by the US fraudster Bernard Madoff.

When the Financial Services Authority shut Foster down in February 2004, he
was found to have £34 million outstanding from 8,500 investors. He was later
declared bankrupt with clients losing everything.

Little of the funds people had invested were used for gambling - millions were
instead poured into an offshore fund.

Meanwhile, Foster had paid himself and his close associates substantial
incomes and used KF Concept money to fund an extravagant lifestyle.

He bought a £600,000 farm near Sittingbourne in Kent and stocked it with
exotic animals including wallabies, prairie dogs, llamas, rheas and
peacocks.

He fitted it with a swimming pool and built Koi carp breeding pools. Another
£700,000 was spent on cars including a string of Mercedes and a £135,000
Ferrari, according to the Serious Fraud Office, which brought the case.

Speaking after the Foster was remanded in custody, the SFO's director Richard
Alderman said he was "very pleased" with the verdict.

"This was a very complex investigation and the SFO was determined to
bring justice for the many victims who lost their hard earned savings to
this Ponzi scheme," he said.

"I would like to thank colleagues from Kent Police and the Financial
Services Authority who helped us with our investigation".

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