A former bank manager and her half-brother have been jailed over a £2 million investment scam that devastated the lives of victims.

Caryn Bates and Matthew Sullivan ran a fraudulent scheme between 2006 and 2010 inducing victims in the UK and Spain to invest in currency trading in which they were guaranteed a return of two to five per cent a month.

But it was a con. Instead the money was gambled away at spread betting companies. Some victims lost their life savings.

Now Sullivan, of Alexandra Corniche, Hythe, has been sentenced to seven years and Bates, of Station Road, Cowden, Edenbridge, to five-and-a-half years.

Sullivan, 53, admitted two offences of obtaining a money transfer by deception, three of fraud by false representation, participating in a fraudulent business, fraudulent trading and unauthorised regulated activity.

Bates, 41, admitted fraud by false representation, fraudulent trading and unauthorised regulated activity.

Many of the 30 victims attended Maidstone Crown Court for the hearing today. Sullivan was attacked outside the court at a hearing in September.

Prosecutor Mark Fenhalls said there was cynical and successful manipulation by the pair to create the illusion the scheme worked.

Bates, who previously worked for the Royal Bank of Scotland, was the respectable “front” of the company World Trading, while her half-brother was running spread betting which destroyed life savings.

“At every twist and turn lies would be told in order to persuade people to maintain their investment,” said Mr Fenhalls.

“Some were persuaded to roll up their investments and would receive a worthless piece of paper every month saying their investment was doing well.”

Investors were told it was a safe and regulated business and they would be protected, when the truth was the complete opposite.

The “wheels started to come off” in 2010 when complaints were made and demands were made for investments to be returned.

Bates was living in Spain with her husband and lied to victims there in an attempt to prevent the fraud being discovered.

Sullivan claimed at the previous hearing that he was about to secure a business deal which would compensate victims, but Mr Fenhalls said it was yet another fraud.

Judge Philip St John-Stevens said he had to bear in mind the degree of planning and determination over the five-year period and the amount involved.

“I am quite satisfied this was a fraudulent scheme from the outset,” he said.

“I am quite satisfied this was a fraudulent scheme from the outset” - Judge Philip St John-Stevens

“This was gambling with other people’s money. It is right each of you had different roles.

“Mr Sullivan headed this plan. Caryn Bates knew as a former bank manager that without her personality and ability to persuade others with her veneer of respectability, the fraud would not have worked in the way it did.”

The loss of money had a devastating effect on victims. Some planned to use it for their retirement in Spain.

“It was a well planned professional enterprise,” said the judge. “There was a high level of profit. Victim statements provide a real insight into the harm inflicted.

“I am satisfied each of you was deeply dishonest, calculating and conniving, taking sums of money and leaving heartache behind you, in some cases changing people’s lies.”

Sullivan and Bates were banned from acting as company directors for 10 years. A confiscation hearing will be held next March.