A former Premier League footballer who tricked friends and family into investing more than £15 million in a foreign currency exchange scam has been jailed for seven-and-a-half years.
Ex-Charlton Athletic defender Richard Rufus, 48, had investors lining up to hand over their money after boasting of making ‘colossal sums’ and promising returns of up to 60% a year.
He claimed to be a successful foreign exchange trader headhunted by some of the UK’s largest financial organisations, including Morgan Stanley, Coutts Bank and Barclays.
Rufus, who made 288 appearances for Charlton after joining in 1993, told them ‘football friends’ including ex-England and Manchester United defender Rio Ferdinand were already on board.
But Southwark Crown Court heard he lost money ‘hand over fist’, using some of the victims’ cash to pay back investors in a ‘pyramid scheme’.
He told one that he only traded 5% of the capital investment, which meant 95% would have been retained safely – reducing the risk of incurring large losses.
Rufus received a total of £15 million, including around £5 million from the Kingsway International Christian Centre (KICC), a church where he was a member and trustee.
The court heard investors got back a total of around £7.6 million.
Analysis of his finances showed Rufus spent some £300,000 on his own lifestyle – including payments for travel, car finance, restaurants, and shopping.
Rufus, from Crystal Palace, south-east London, insisted he was doing friends and family a ‘favour’ by handling their cash.
He apologised for losing their money from the witness box, saying: ‘I am absolutely remorseful for my family and friends.
‘It all started to help them to make money and in the early 2000s that is what we did.
‘We carried it on to the mid-2000s and I always had a good intention. I have lost absolutely everything and I don’t want people to feel sorry for me.
‘Even though it has made me bankrupt, it is still my intention to make amends in relation to what happened. Especially watching my family and friends’ step into this witness box.’
Rufus’s home was repossessed in 2012 and he was declared bankrupt in October 2013.
He denied but was found guilty of three counts of fraud, using around £2 million in criminal property and carrying out a regulated activity without authorisation, between May 2007 and April 2012.
Jailing Rufus, Judge Dafna Spiro told him: ‘The victims of this fraud are haunted by your actions.
‘The people who invested did so in good faith, they believed your spiel because they thought you were the real deal.
‘You were robbing Peter to pay Paul. You were living a lie at the expense of others.’
Lucy Organ, prosecuting, earlier told the court some victims lost their life savings, with others forced to sell their homes.
James Edwards said he and his wife had hoped were trying to buy a new house when they were fleeced by Rufus.
Summarising his victim impact statement, Ms Organ said: ‘His daughter has had to be removed from the school…. their lives have been irreversibly shattered.
‘The option of retirement has been taken away from him as Mr Edwards now has to work until he dies in order to keep a house over their heads.’
Roninir Deb said Rufus has ‘financially crippled him, causing him physical and emotional problems including suicidal thoughts’.
The prosecutor said: ‘He’s gone from a happy-go-lucky person to a damaged one. He had to remove their family from their home and wishes he never met Richard Rufus.’
Ian Clarke said the former Charlton player’s crimes have damaged his family life and relationship with his sister.
‘He was relying on the promise of a monthly income for his everyday living expenses which resulted in financial hardship,’ Ms Organ said.
‘He was chased by mortgage and credit card companies for years. [He even] had to tell his children not to open the door in case it was the bailiffs.’
Simon Spence, KC, defending, earlier told the court of Rufus: ‘His house has been possessed and disposed of; he now lives in a rented property with his family.
‘He has three children and a wife who are dependent upon him and that of course is going to impact on them as he starts to serve the inevitable prison sentence your honour must pose.
‘For some who are not in the public eye who fall from grace, it is possible to rehabilitate oneself and regain people’s trust in him. For those in the public eye it will always be there in the press and so on.
‘Mr Rufus’ fall from grace is likely to be permanent.
‘He is somebody who following his forced retirement from football spent a lot of time devoted to charity work, not for any cynical reason but that’s what he wanted to do and that is something he will no longer be able to do.
‘As far as he is able, Mr Rufus is seeking to continue helping others through the church he is clearly somebody in any aspect of his life a good man.
‘He is not a career fraudster and your honour can have some confidence that he is someone who will try the best he can to put himself back on his feet and live a law-abiding life.’
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