Businesswoman duped of £625,000 after affair with a former security guard who posed as an investor

A high-flying German businesswoman lost £625,000 after she had an affair with a former security guard who posed as a wealthy investor, a court heard today.
Company chief executive Talke Stauss, 46, claimed she was so in love with Rizwan Butt she believed his story that he was the go-between for a potential $1.5 billion dollar investment into her hedge fund.

In fact, the 45-year-old ran a cleaning company with minimal assets and lived with his mother in a £56,000 terraced house in Longsight, Manchester.
When he asked for a million dollars as a returnable “security deposit’ to clinch the $1.5 billion deal, Mrs Stauss and her husband Roman, 44, agreed to transfer the money in sterling to Butt’s bank account without carrying out any checks on his background, a jury was told.
Mrs Stauss alleges she was taken in by his ‘charm offensive’, which included meetings at top London hotels, and talk of introducing investors from the Middle East and of having a Swiss bank account.
He rented a Bentley to visit the Dorchester and Ritz hotels and drove her back to her apartment in it, and later professed his love for her.
She told the jury she was so enamoured with Butt that she was planning on leaving her husband but only stopped when a director of her investment firm confronted her, insisting Butt was a fraud – but by then she had already paid the £650,000 deposit.
Appearing with her husband Roman yesterday at Manchester Crown Court, she said: ‘He said he fell in love with me. I was then charmed and fell in love with him.
‘There was business… and I was dragged into falling in love with him and we were having a love affair. There is a personal relationship and a sexual relationship. There is a difference and it develops slowly. There are different stages of love.
The nature of the relationship was too deep for comfort. I was under additional pressure when he confessed his love. I reciprocated and regret that very much.
‘He indicated I was a prized possession and would bring success for the company. I gave in to the pressure. It was supposed to be an in-and-out payment and would come back to us in two banking days.’
Butt claimed he had contacts with Middle Eastern investors during the two-month scam, which he ran from his mother’s £56,000 terraced house in Longsight, Manchester, the jury heard.
Mrs Stauss, her husband Roman, 44, and a fellow investor, Eddie George, were aiming to form a hedge fund after setting up a financial firm called ATG in April 2012.
They were introduced to Butt though a German friend who met him at a renewable energy fair, where he said he was interested in investing his money.
They had three meetings at London’s Dorchester Hotel in the space of three weeks in August last year, and from one he drove Mrs Stauss home in a Bentley.
At the third meeting, on August 17, Butt reportedly said he wanted to introduce investors from Abu Dhabi and Saudi Arabia who had $1.5billion to put into in the couples’ hedge fund.
They were then asked to pay a $1m security despot to Butt to ‘demonstrate the legitimacy and viability’ of their firm, ATG.
Butt met Mrs Stauss again on September 7 in the Maroush Lebanese restaurant in Knightsbridge, London.
By this time he had professed his love for her and promised to pay back the money as soon as he had shown it to his investors.
Without carrying out any background checks, Mrs Stauss and her husband transferred the funds to Butt’s company Horizon Solutions UK, the court heard.
The alarm was raised when a worried Mr George researched Butt and discovered the firm had net assets of just £657.
Mrs Stauss returned from a business trip with Butt in Shanghai with a plan to leave her husband – and was confronted by Mr George.
She asked for the money back and Butt, who had left Shanghai early, sent a text message saying: ‘Talke my dear. No problem my love. They should have it by five this evening. Take care love. Kisses.’
Another text read: ‘good morning my dear hope you’re well. The funds should be in your account by now as they’re out of mine.’ One said: ‘tell him not to worry. He will have the funds. B patience.’
Police caught up with Butt four weeks later, the court heard, and found him at the wheel of a black Audi Q7 carrying £1,000 in cash.
He had bought a house for £175,000 and had a black Mercedes parked on the driveway.
The Bentley turned out to be rented – and before the scam he drove a 2003 Honda Accord, the court heard.
Before the alleged scam, Butt worked as a security guard, lived with his mother and had bought the house with a £30,000 deposit he borrowed from two friends.
Mr Stauss told the court: ‘We were aware for Western Europe business [paying a cash deposit] was uncommon, but for Middle Eastern business they do it this way.
‘But we decided that although it was not 100% clear cut, given the email conversations we would go ahead.
‘This was the first time her business decision and my business decision were not correct because we were involved with someone who played a very clever game.’
Mrs Stauss added: ‘When I returned from Shanghai I told Roman I was going to get a new apartment. When Eddie said: “you are being conned, this is a fraud,” my mind changed. We were so shocked.’
Paul Dockery, prosecuting, said: ‘The Stauss’ were impressed by the defendant’s knowledge of investments, global economics and wealth fund opportunities in the Middle East. Mr Butt said he wanted to make a significant investment in the hedge fund.
‘But he was dishonest from the outset and created an image about himself as being wealthy knowledgeable and practised investor with genuine investment connections.
‘The reality was that he was presenting a false existence in an endeavour to make financial gain whenever he could.
‘Talke Stauss particularly was deluded and so keen to gain wealthy investors for her hedge fund that she did not make the most basic check on the defendant’s background.
‘By reason of the image the defendant had presented to Mr and Mrs Stauss they did not question the justification for the transfer or require any checks to be done into Mr Butt or his company.
‘Three days later Mrs Stauss saw Mr Butt who spoke of his forthcoming journey to Dubai to speak to his investors and discuss the money transfer.
‘He also on that occasion told Mrs Stauss he had fallen in love with her and he had begun to charm her. He was putting on a show and making false statements and the charm offensive led to that position.’
The jury was shown e-mails between Butt and Mrs Stauss, including one from him which said: ‘They don’t know what security deposit I am taking off you so you need to sort this out quick so I can give them the feedback.’
When arrested Butt claimed the deal fell through because ATG did not have a relevant trading licence, the court heard.
He denies fraud, false representation, transferring criminal property and money laundering.
The case continues.