A former Nasa scientist has admitted defrauding investors and using some of the proceeds to buy a house.
John Burford generated more than £1m from 100 investors through his illegal practices, but only £760,000 was ever traded – much of which was lost.
Substantial amounts of the money investors sent him was actually used to buy his own home, Westminster Magistrates’ Court heard.
The 85-year-old, who now lives in Mansfield, Nottinghamshire, admitted fraud by false representation between January 2020 and December 2023 when he appeared in court on Friday.
He also pleaded guilty to carrying on a regulated activity when not authorised.
The defendant has a PhD in physics from the University of Toronto and worked for Nasa in its manned Mars exploration team based in Washington DC, before moving into finance, his biography on publisher Pan Macmillan’s website says.
Prosecutor Tom Godfrey told the court Burford set up a scheme, in which subscribers were daily email alerts with investment opportunities.
He traded £760,000 worth of the money generated, but “lost significant sums”, Mr Godfrey said.
“He used substantial amounts of the money received to buy his own home,” he added.
The former scientist was the sole director of Financial Trading Strategies Ltd, but was not authorised to trade in the UK, the court heard.
Carrying out unauthorised business is an offence punishable by a fine and can carry a sentence of up to two years’ imprisonment.
Steve Smart, joint executive director of enforcement and market oversight at the Financial Conduct Authority (FCA), said: “Mr Burford fleeced unwitting investors in order to enrich his life – not theirs.
“Identifying and disrupting criminals who abuse people’s trust for their own gain, is a top priority for the FCA.”
Burford, who has no previous convictions, will be sentenced at Southwark Crown Court at a later date.
