Ex-Premier League star Richard Rufus ‘conned pal into thinking he could make £5m – before he lost thousands in scam’
A FORMER Premier League star told his pal he could make up to £5.6m - but lost him thousands, a court has heard.
Ex-Charlton Athletic defender Richard Rufus, 47, allegedly scammed friends and family out of £15million to maintain his lavish lifestyle.
He drove a Bentley and lived on an exclusive private estate in Purley, South London, on the money he was swindling, Southwark Crown Court has heard.
Construction engineer Vincent Nairne said he had known Rufus since 2000 and carried out work at his home in Purley.
He said: “I got to know him very well... I spent quite a considerable amount of time with him, hence our relationship developed.”
Mr Nairne said he trusted the ex-footballer who told him he would not charge any fees.
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He said: “He was doing this invitation on my behalf. It was him trying to give us a chance.
“To give - should we say ordinary people - a chance to invest in markets that we would not have available to us. [It was] his good will I guess, just his good will.”
Mr Nairne noted that Rufus “seemed to be enjoying life” driving a Mercedes S-class, a Bentley and a Range Rover, while sporting a Rolex watch.
He added: “He seemed to be doing quite ok.”
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Rufus told his friend he had spent a lot of money on training to be proficient in lucrative Foreign Exchange trading, the court heard.
Mr Nairne said: “He told me he had progressed and become very good with what he was doing.
“He said he had been approached, that he had made quite a lot of money for people and companies.”
Mr Nairne initially paid Rufus between £8,500 and £12,500 and was told he could make potential profits of £425 a month.
“He told me any losses would be borne by himself, so technically I was risk free.”
Rufus told Mr Nairne his investments could yield over £5.6m over 12 years, on the basis of 5 per cent a month in compound interest.
“I thought this was absolutely excellent, totally excellent,” said Mr Nairne.
He said he was shown paperwork on his investments and assured that, with two weeks' notice, the invested funds could be made available to him.
Lucy Organ, prosecuting, asked: “Was there any risk?” Mr Nairne replied: “None, it appeared to be doing quite well.”
“At any time at all were there any losses?” Ms Organ asked.
The witness replied: “None whatsoever.”
Rufus admitted he was not approved by the Financial Services Authority (FSA) but claimed he was allowed to trade whilst awaiting their approval.
Eventually in February 2011 his trading accounts were frozen.
Mr Nairne said: “He told me he couldn't accept any more funds, his accounts were frozen. He said there were discrepancies with regards to the trading that took place. There wasn't a specific reason.
“I assumed he had [still got my money]. He never said at any time at all that he didn't have the money.”
The FSA sent Mr Nairne a letter saying there was a problem with his investment which Rufus claimed was not totally correct and “wasn't totally true”.
Mr Nairne said: “At this point I was getting a bit concerned that things were not as they seem. He said his accounts were frozen but it's being resolved.”
He said he was re-carpeting Rufus's house on the day when his home was repossessed by the FSA.
“I got very numb. I was still hoping, more than believing, that there was a slim chance what he was telling me was true.
“I was always in limbo as to what was happening next. He always insisted the money would be available but I never received any money.”
Mr Nairne was assured by Rufus that he would be able to get his investments back if he signed a document claiming the former footballer did not owe him any money.
He agreed to sign the document.
Simon Spence, KC, for Rufus, said the investment agreement did not remove the risk of the money being lost.
Mr Spence said: “I suggest you misunderstood what he told you - the risk was still there.
“Did this not ring a major alarm bell in your mind?”
Mr Nairne replied: “I never questioned him on that at any time at all.”
Rufus made 288 appearances for Charlton, scoring 12 goals.
He was forced to retire from football at the age of 29 after an unsuccessful knee surgery was performed in the United States.
He told other investors that some of his “football friends” such as former England and Man Utd defender Rio Ferdinand had invested with him, the court has heard.
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Rufus, of Anerley Hill, Crystal Palace, South London, denies three counts of fraud by false representation, one count of possessing criminal property and one count of carrying out a regulated activity when not authorised.
The trial continues and is due to last three weeks.
