Financial adviser who defrauded people out of £2million is jailed

A financial adviser who defrauded people he knew, his clients, and a charity out of nearly £2milion has been sentenced to 11 years in prison.

Timothy ‘Paul’ Barnes, 68, of Charland Court, Droitwich, appeared at Worcester Crown Court on Thursday 4 September where he pleaded guilty to:

• 34 counts of fraud by false representation
• Three counts of make/supply article for use in fraud
• Two counts of fraud by abuse of position

On Friday (19 June), at Worcester Crown Court, Barnes (pictured below) was sentenced to 11 years.

In November 2022, Barnes approached people he knew to ask for a short-term loan under the pretence he needed the money to pay for either an inheritance payment or a divorce payment.

On each occasion he promised to repay the loan within a few days which he would confirm in writing by email or a signed document.

The former financial adviser then moved onto approach his clients, using his knowledge as their financial adviser of their wealth, to secure loans.

He also created false documents, again to obtain further funds, eventually defrauding 34 people and securing £1,754,736.68 in “loans”.

Barnes was also the chair of a well-known charitable trust and had access to the accounts. He duped the trustees into believing £206,500 would be used for the charity but instead paid the money into his own account.

In addition to this, he also took money from a residents’ association in an estate where he was living and transferred £1,245 into his own account. By the end of May 2023, Barnes had stolen approximately £1,962,481.68, from a total of 36 victims.

Following extensive enquiries, officers discovered that Barnes had been investing the money he had stolen into his crypto wallet. Barnes was arrested on 19 December 2023 on suspicion of fraud and money laundering offences.

Detective Sergeant Bev Hamilton, from West Mercia Police’s Economic Crime Unit, said: “I welcome the custodial sentence handed to Barnes who abused his position of trust as a financial adviser, charitable trust chair and a neighbour and friend to many.

“Over an 18-month period, Barnes had stolen nearly £2million from a total of 36 individuals and organisations alike, causing significant harm across both his personal and professional circles.

“The actions of criminals like Barnes can have a big impact on lives, businesses, and communities of those they prey upon.”