Two Extradited British Citizens Plead Guilty To Conspiracy To Defraud Investors In Fraudulent Co-Working Space Business

Press Release Two Extradited British Citizens Plead Guilty To Conspiracy To Defraud Investors In Fraudulent Co-Working Space Business Friday, May 3, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York James Robinson and David Kennedy, Principals of United Property Group, Plead Guilty to Fraudulently Soliciting Millions of Dollars From Investors in Bar Works Inc. and Related Entities Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES ROBINSON and DAVID KENNEDY, both citizens of the United Kingdom, pled guilty to engaging in a conspiracy to defraud victims by making material misrepresentations about the management and operations of a company called Bar Works Inc. and related entities (“Bar Works”). ROBINSON and KENNEDY were arrested in Spain on November 30, 2022, and were subsequently extradited. ROBINSON pled guilty today before U.S. Magistrate Judge Barbara Moses and is scheduled to be sentenced on September 25, 2024, before U.S. District Judge Lewis A. Kaplan. KENNEDY pled guilty on October 13, 2023, before U.S. Magistrate Valerie Figueredo, and is scheduled to be sentenced on May 7, 2024, before Judge Kaplan. U.S. Attorney Damian Williams said: “James Robinson and David Kennedy partnered with notorious fraudster Renwick Haddow and used their agent network in Spain to launch a massive Ponzi scheme that lured hundreds of unsuspecting investors from around the world, all in exchange for massive commissions. Today’s plea signifies this Office’s commitment to hold accountable every perpetrator of fraudulent investment schemes, no matter where they operate.” According to the Indictments and other court documents: ROBINSON, KENNEDY, and co-conspirators Renwick Haddow and James Moore are citizens of the United Kingdom. At all times relevant to the Indictment, United Property Group and related entities (collectively, “UPG”) constituted a company based in Spain that was controlled in part by ROBINSON and KENNEDY. UPG sold real estate and other investing opportunities to potential investors. Bar Works was a private co-working space company controlled by Haddow, which operated locations in New York City and elsewhere between in or about 2015 through 2017 and accepted millions of dollars in investments from investors recruited through UPG, among others. Prior to launching Bar Works, Haddow had been disqualified as a director of any UK company for eight years and was later sued by the Financial Conduct Authority, a British regulator, for operating investment schemes through misrepresentations that lost investors substantially all of their money. These sanctions and lawsuit were publicized online. In exchange for millions of dollars in commissions, ROBINSON, KENNEDY, and Moore partnered with Haddow in soliciting investments into workspace leases in Bar Works through material misrepresentations concerning, among other things, the identity of Bar Works’ management and the operations of Bar Works. Specifically, as ROBINSON and KENNEDY knew, notwithstanding Haddow’s control over Bar Works, Haddow caused the Bar Works offering materials to omit his name entirely, list a fictitious individual named “Jonathan Black” as the Chief Executive Officer of Bar Works, and claim that “Black” had an extensive background in finance and past success with start-up companies. Through UPG, ROBINSON and KENNEDY recruited agents to sell workspace leases in Bar Works and knowingly provided them with fraudulent offering documents and other information. In marketing Bar Works to investors attempting to do due diligence, UPG agents supervised by ROBINSON and KENNEDY represented that ROBINSON and KENNEDY had met “Jonathan Black” in New York as part of UPG’s own due diligence. An account controlled in whole or in part by ROBINSON and KENNEDY received over $2 million in commissions from Bar Works in exchange for soliciting victims to invest at least approximately $7.5 million in this scheme. Separately, Moore received another approximately $1.6 million from Bar Works. Overall, prior to its collapse in or about June 2017, Bar Works obtained over $57 million from over 800 investors worldwide. * * * ROBINSON, 47, and KENNEDY, 48, both residents of the UK, each pled guilty to one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Renwick Haddow, 55, pled guilty pursuant to a cooperation agreement, on May 23, 2019, to one count each of wire fraud and wire fraud conspiracy relating to the Bar Works scheme, and one count each of wire fraud and wire fraud conspiracy relating to a separate Bitcoin-related investment scheme. Haddow’s sentencing is currently scheduled for November 1, 2024, before U.S. District Judge Laura Taylor Swain. James Moore, 63, was found guilty on June 7, 2019, of wire fraud and conspiracy to commit wire fraud following a week-long jury trial before U.S. District Judge Richard M. Berman. On February 1, 2022, Moore was sentenced to 140 months in prison by Judge Berman. Savraj Gata-Aura, 37, pled guilty on November 18, 2019, to one count of wire fraud conspiracy for his participation in the scheme and was sentenced to four years in prison on July 27, 2020, by U.S. District Judge Jed. S. Rakoff. Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He further thanked the Government of Spain for arresting and extraditing ROBINSON and KENNEDY and the Securities and Exchange Commission, which has separately brought civil actions against ROBINSON, KENNEDY, Moore, Haddow, and Gata-Aura. The Department of Justice’s Office of International Affairs also provided substantial assistance in securing ROBINSON and KENNEDY’s arrest and extradition. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution. Contact Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600 Updated May 3, 2024 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 24-165

Press Release Two Extradited British Citizens Plead Guilty To Conspiracy To Defraud Investors In Fraudulent Co-Working Space Business Friday, May 3, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York James Robinson and David Kennedy, Principals of United Property Group, Plead Guilty to Fraudulently Soliciting Millions of Dollars From Investors in Bar Works Inc. and Related Entities Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES ROBINSON and DAVID KENNEDY, both citizens of the United Kingdom, pled guilty to engaging in a conspiracy to defraud victims by making material misrepresentations about the management and operations of a company called Bar Works Inc. and related entities (“Bar Works”). ROBINSON and KENNEDY were arrested in Spain on November 30, 2022, and were subsequently extradited. ROBINSON pled guilty today before U.S. Magistrate Judge Barbara Moses and is scheduled to be sentenced on September 25, 2024, before U.S. District Judge Lewis A. Kaplan. KENNEDY pled guilty on October 13, 2023, before U.S. Magistrate Valerie Figueredo, and is scheduled to be sentenced on May 7, 2024, before Judge Kaplan. U.S. Attorney Damian Williams said: “James Robinson and David Kennedy partnered with notorious fraudster Renwick Haddow and used their agent network in Spain to launch a massive Ponzi scheme that lured hundreds of unsuspecting investors from around the world, all in exchange for massive commissions. Today’s plea signifies this Office’s commitment to hold accountable every perpetrator of fraudulent investment schemes, no matter where they operate.” According to the Indictments and other court documents: ROBINSON, KENNEDY, and co-conspirators Renwick Haddow and James Moore are citizens of the United Kingdom. At all times relevant to the Indictment, United Property Group and related entities (collectively, “UPG”) constituted a company based in Spain that was controlled in part by ROBINSON and KENNEDY. UPG sold real estate and other investing opportunities to potential investors. Bar Works was a private co-working space company controlled by Haddow, which operated locations in New York City and elsewhere between in or about 2015 through 2017 and accepted millions of dollars in investments from investors recruited through UPG, among others. Prior to launching Bar Works, Haddow had been disqualified as a director of any UK company for eight years and was later sued by the Financial Conduct Authority, a British regulator, for operating investment schemes through misrepresentations that lost investors substantially all of their money. These sanctions and lawsuit were publicized online. In exchange for millions of dollars in commissions, ROBINSON, KENNEDY, and Moore partnered with Haddow in soliciting investments into workspace leases in Bar Works through material misrepresentations concerning, among other things, the identity of Bar Works’ management and the operations of Bar Works. Specifically, as ROBINSON and KENNEDY knew, notwithstanding Haddow’s control over Bar Works, Haddow caused the Bar Works offering materials to omit his name entirely, list a fictitious individual named “Jonathan Black” as the Chief Executive Officer of Bar Works, and claim that “Black” had an extensive background in finance and past success with start-up companies. Through UPG, ROBINSON and KENNEDY recruited agents to sell workspace leases in Bar Works and knowingly provided them with fraudulent offering documents and other information. In marketing Bar Works to investors attempting to do due diligence, UPG agents supervised by ROBINSON and KENNEDY represented that ROBINSON and KENNEDY had met “Jonathan Black” in New York as part of UPG’s own due diligence. An account controlled in whole or in part by ROBINSON and KENNEDY received over $2 million in commissions from Bar Works in exchange for soliciting victims to invest at least approximately $7.5 million in this scheme. Separately, Moore received another approximately $1.6 million from Bar Works. Overall, prior to its collapse in or about June 2017, Bar Works obtained over $57 million from over 800 investors worldwide. * * * ROBINSON, 47, and KENNEDY, 48, both residents of the UK, each pled guilty to one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Renwick Haddow, 55, pled guilty pursuant to a cooperation agreement, on May 23, 2019, to one count each of wire fraud and wire fraud conspiracy relating to the Bar Works scheme, and one count each of wire fraud and wire fraud conspiracy relating to a separate Bitcoin-related investment scheme. Haddow’s sentencing is currently scheduled for November 1, 2024, before U.S. District Judge Laura Taylor Swain. James Moore, 63, was found guilty on June 7, 2019, of wire fraud and conspiracy to commit wire fraud following a week-long jury trial before U.S. District Judge Richard M. Berman. On February 1, 2022, Moore was sentenced to 140 months in prison by Judge Berman. Savraj Gata-Aura, 37, pled guilty on November 18, 2019, to one count of wire fraud conspiracy for his participation in the scheme and was sentenced to four years in prison on July 27, 2020, by U.S. District Judge Jed. S. Rakoff. Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He further thanked the Government of Spain for arresting and extraditing ROBINSON and KENNEDY and the Securities and Exchange Commission, which has separately brought civil actions against ROBINSON, KENNEDY, Moore, Haddow, and Gata-Aura. The Department of Justice’s Office of International Affairs also provided substantial assistance in securing ROBINSON and KENNEDY’s arrest and extradition. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution. Contact Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600 Updated May 3, 2024 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 24-165