John Bailey has today been convicted of five counts of fraud at Liverpool Crown Court. Known as the ‘Pencil Man’, Mr Bailey has 24 previous convictions from 55 separate offences, which includes 28 fraud offences. He has also previously been banned from entering, contacting or causing harassment alarm or distress in a number of licenced betting offices.
Andrew West, prosecutor at the CPS said:
“John Bailey used his powers of persuasion to encourage people to ‘invest’ in him and his alleged businesses. However, instead he used these sums of money to fund his prolific, and disastrous, gambling habit.
“This was entirely dishonest. Not only did he lie to investors in order to gamble with their money, he also then demanded further betting money from them, in order to regain their original savings that he had lost. This cycle of debt continued with some victims losing hundreds of thousands of pounds. One victim lost just over £2m.
“Far from appreciating the damage he had wrought, John Bailey continued to gamble and deceive investors, breaching a previous ban of holding a specific betting account. Known as the ‘Pencil Man’ because he always carried a pencil when visiting betting shops, he has now been held to account for the substantial losses and distress he caused his victims.”