John Charles Wheatland pleads guilty $1.7m Gold Coast fraud plot

A man who squeezed more than $1.7m out of investors in a three-year investment fraud scheme claims he did not set out to rip off his clients. WHY HE DID IT

A man who conned investors out of more than $1.7m in a Gold Coast fraud scheme has been sentenced to almost a decade in jail, with his victims seemingly unlikely to ever be repaid.

John Charles Wheatland began ripping off his investors only a few months after launching his investment service in early 2016, drawing in associates he had met through previous foreign exchange trade forums.

Southport District Court was told Wheatland almost immediately started losing money on the investments and began fabricating inflated account balances, growth rates, and even graphs.

One of Wheatland’s emails told investors the fund had averaged growth of 7 per cent since it opened when the actual amount held totalled little more than $20, it was heard.

Crown prosecutor Ryder Reid said the now-41-year-old kept up the charade for three years, tricking investors into handing over cash they would not have if they knew the truth.

Mr Reid said Wheatland’s industry experience and knowledge made his lies more specific and believable.

“He lied to conceal the persistently abysmal performance of his investments and induce (clients) to transfer more money, even when it was clear the fund was failing,” Mr Reid said.

The court was told more than $300,000 was returned to investors, with about $1m lost to bad trades or investments and another six-figure sum transferred to a joint bank account Wheatland held with his then-wife.

A fraudster has been jailed for 10 years after conning investors out of $1.7m on the Gold Coast.

The fraudster was entitled to just $59,000 of that as a performance fee for the few months the fund was profitable.

The court was told Wheatland’s scheme came to light in mid-2019 when he told an investor he planned to commit suicide as a way out, believing that or jail to be his only options.

Wheatland was branded a “thief” in one of several victim impact statements written to the court, detailing the devastating consequences the scheme had on his former clients.

One spoke of a “profound” effect on their mental health and uncertainty around their retirement, with another saying actions spoke louder than words and that Wheatland would be trying to repay his victims if he were truly remorseful.

The court was told no offer of restitution was made and it was not being sought by the Crown.

Defence barrister James Marxson said his client did not set out to defraud his clients, but was trying to trade his way out of the mounting losses.

Mr Marxson said Wheatland was seeking treatment for his mental health concerns when he could, and had since lost his marriage and relationships with his children.

“The offending arose out of an unusual set of circumstances of stress and wanting to perform for himself, his family, and his clients, which ultimately led to gambling-like behaviour to recover those losses,” he said.

A psychological report indicated Wheatland’s critical decision making and judgement were impacted at the time and that he was still facing severe mental health concerns, the court was told.

As a UK citizen living in Australia on a visa, Wheatland was likely to also face deportation upon his release from custody, it was heard.

Wheatland pleaded guilty to three counts of fraud, including two to the value of $100,000 or more.

He was sentenced to nine years’ jail with parole release on April 28, 2027.

Originally published as John Charles Wheatland pleads guilty $1.7m Gold Coast fraud plot