Sutherland landowner issues warning to others after being 'scammed' out of £130k
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A Sutherland landowner faces having to sell off parts of his estate - which includes Scotland's most northerly nudist beach - after claiming he has lost £130,000 in a crypto scam.
Michael Dudgeon only got involved in the "too-good-to-be-true" scheme to help pay off the bills at his 4000-acre Crakaig Estate, near Helmsdale.
He is now speaking out in the hope of preventing others from being drawn in by get-rick-quick promises.
Mr Dudgeon, 71, was tempted after seeing an advert promising seemingly fantastic returns.
Over six months he ploughed in nearly £100,000 in cash and investments in a bundle with a broker that included crypto currency and oil price leverage.
His portfolio appeared to have risen to a staggering £402,000.
But when the tried to get his money out, he was allegedly told by a crypto currency trader who was now managing his investments, that he had to pay £34,000 in early exit penalty fees to Coinbase - the world’s best-known digital currency exchange where his money was apparently eventually parked.
Mr Dudgeon duly paid up only to be asked for £18,000 for "capital gains tax".
Having paid £4000 he got suspicious - and also out of cash.
So far between the investments, penalty and "tax", Mr Dudgeon has splashed out £130,000.
"I could lose the whole estate, but certainly may have to sell off parts of it. It has been in my family for over 150 years," he revealed.
"I only invested to help pay the running costs. I put in my savings, everything I had. It started off with £500 and that was said to have increased ten times in a short time. I got reeled in.
"I invested more and more, but it was when the broker talked me into the stock market and an oil leverage scheme on the back of the Ukranian crisis that I wanted out.
"The leverage was based on oil reaching $120-a-barrel and I thought there was no way that will happen.
"I asked for my money back, but they kept switching me between companies that would pay out. Eventually they said Coinbase had my wallet and it was worth £402,000."
Mr Dudgeon then started dealing with people purporting to be from Blockchain.com, a crypto currency financial services company.
"I wanted my money back, but somebody saying they were from Blockchain said I needed to pay Coinbase an early exit penalty of £34,000 first, which I did," he said.
"Then those saying they were from Blockchain came back again with a demand for £18,000 of capital gains tax which had to be paid to Coinbase for my money to be released.
"I paid £4000 of that and ran out of money. A guy who said he was in Switzerland and represented Blockchain kept calling daily to demand the rest of the money.
"I said 'I haven't got any more' and they said 'can't you sell any assets?'. They then said I was going to be fined £4000 a week for them hanging on to my money. I suggested they deduct the money from my equities in my digital wallet and give me the rest. They said they weren't allowed to do that.
"Unfortunately I allowed the people purporting to be investing money for me to have control of my computer to make the transactions. It was complicated so I allowed access. I can't be sure where it has gone.
"I am now resigned to having lost all my money. I don't expect to see it again - I feel I have been scammed and I just don't know what the future holds for me or the estate.
"I have the most northerly nudist beach in the country which has proved more popular than I ever imaged. But I feel it is me who has lost the shirt of their back.
"I have contacted the police, who didn't even want to look at the documents, the banks say ultimately it was my decision and my risk. I am taking legal advice, but at this stage I hold out little hope.
"I am land rich, but cash poor. Because of this scam I only have £249 left in my account.
"I am only making this public to stop others being so gullible and being scammed."
Mr Dudgeon's estate near Helmsdale has shooting, stalking, an arable farm, forestry and a caravan site.
On their websites both Coinbase and Blockchain warn of scams.
Coinbase says:"Be skeptical of websites or services promising high returns or unrealistic investment opportunities. If it sounds too good to be true, it usually is."
A spokesperson for Blockchain.com said: “We do not have a record of a customer by that name (Michael Dudgeon). Unfortunately this appears to be a case of someone impersonating our company. The Blockchain.com support team and other employees will never initiate contact via phone, ask for a fee to access your funds, ask for your password, backup phrase, or access to your Wallet.”
