Ames – who last August was “monitoring things” for his father at Harlequin’s flagship Caribbean resort Buccament Bay – was charged with fraud in December 2012 in relation to his two green investment firms, Forestry for Life and the Investor Club.
Harlequin have said Matthew Ames is no longer overseeing Buccament Bay.
Forestry for Life and the Investor Club took more than a million pounds from investors who were promised 15% returns from teak tree plantations and rainforest protection projects, but at the time the alleged fraud was discovered by the City of London Police and the then regulator the Financial Services Authority (FSA), the two companies had just £310 between them.
Isleworth Crown Court heard that instead of investing the money as promised, Ames used the cash to fund his lavish lifestyle, including hiring a Lamborghini and renting Caribbean accommodation, according to the Daily Mail.
Prosecutor Stuart Biggs said: “The method was to create an enticing glossy brochure. It included quotes from Prince Charles, Tony Blair and referenced the Kyoto Protocol and Harvard University. There was an added bonus you were doing something ethical.
“In truth no investments were made by either company, not a single piece of land was purchased abroad or a tree planted, or money kept safe in a separate account. It was used to pay company expenses, staff, and to support Mr Ames and his lifestyle.”
The court also heard that in 2010 Ames bragged to top racing driver David Brabham about how well his companies were doing – before any land had even been bought.
Stuart Biggs, prosecuting, told the jury it was to give the false impression of a successful business to attract investment.
City of London investigators found evidence £250,000 was paid out to investors, but it came from other clients’ deposits and not generated by any investment.
Biggs added: “This is often referred to as a Ponzi scheme, taking from Peter to pay Paul out of new creditors’ money that is being shuffled around.”
While running both companies Ames dishonestly represented what invested money would be used for, the level of return, and misappropriated cash for other uses, Biggs told the court.
The court also heard one agent, who also invested, was shown title deeds for land in Brazil which Ames’ companies never bought, while an industry adviser who suggested it may be a Ponzi scheme was sacked.
By late 2010 interest payments to clients stopped and both firms were liquidated in March 2011 after the FSA became aware of the unregulated investments.
Ames was arrested in September that year and denies two counts of fraudulent trading between 2008 and 2011. He was disqualified from being a company director for 13 years by the Insolvency Service in August.
The trial continues.
