It is reported that the Denver Trading scam involved a staggering £7.7million investment fraud.
Two companies, Denver Trading AG and Denver Trading Ltd, provided an investment opportunity into what they called ‘rare earth elements’ which were essentially a set of 17 metals typically used in electronics manufacturing, for example, in the production of mobile phones.
A nexus of over 40 UK sales agents sold the Denver Trading investment at substantial markups of up to 500%. This was on the premise that their value was set to shoot up.
The Denver Trading investment proposition was initially exposed as an investment scam by daily newspaper, The Mirror and whilst those behind the investment sought to sue The Mirror initially, they were later convicted and jailed in 2017 for defrauding investors and making false representations regarding the investment proposition.
Unsurprisingly, the companies involved have since been wound up and were the subject of a criminal investigation.
