Mortgage firm chief jailed for 43m fraud

First Edition

A businessman was jailed for five years yesterday for a 43m mortgage fraud which deprived hundreds of investors of their life savings.

Roy Wharton, 61, made a fortune lending money from private investors to those wanting second mortgages for home improvements, Oxford Crown Court heard.

As chairman of Castlegate Group Holdings and Castlegate Securities, based in Reading, Berkshire, he enjoyed a lavish lifestyle, driving Rolls-Royces and taking frequent holidays.

But as the recession in the late 1980s began to bite into profits, Wharton began lending large amounts to a select group of borrowers, including speculative property developers, who were unable to make repayments.

Wharton, formerly of Finchampstead, Berkshire, but most recently of Yateley, Hampshire, was found guilty of fraudulent trading.

Judge Richard May told him: 'People let you have their money because they trusted you. You responded with flagrant dishonesty and large sums were lost and private investors lost their savings. You must have caused them misery and despair.'

Wharton, now bankrupt, was disqualified from being a director for 10 years.