A former cab driver who ran a £34 million pyramid-style scheme that preyed on the poor is facing prison.

Gambler Kevin Foster, 51, of Doddington, Kent (not the model on the right), was found guilty of dishonestly concealing a material fact and theft.

He took an average of £4,200 from people at glitzy events at sports and social clubs across the country.

The judge told him he will go to jail for a "substantial" amount of time. He will be sentenced later.

Foster's KF Concept scheme targeted people on low incomes, persuading many from small valley communities in South Wales.

He told them that their investments, which had a £1,000 minimum, were guaranteed to multiply five times in two years.

During the high-pressure events Foster handed out luxury holidays and even cars. All added to the euphoria of the show and convinced people to hand him their cash. But all he did with it, was spend it.

Foster blew £600,000 on a farm in Kent complete with a swimming pool and hot tub, and spent a massive £700,000 on cars including a Ferrari Spyder.

But it wasn't all wasted – Kevin Foster also built up a collection of koi carp. Nearly £3 million in cash went on maintaining his lifestyle.

Pyramid and Ponzi schemes, where people are told their money is being invested wisely but is really just disappearing into a black hole, seem to be forever with us. Every year a new one hits the headlines.

Pyramid schemes are so-called because each member of the scheme is sent money from people on the tier below, but as soon as people stop joining, the bottom tier are left 'paying up' but without anyone paying them.

Under Ponzi schemes – named after a notorious Italian-American fraudster – all the money goes directly to the founder.

So long as people keep giving him money he can pay it out in dribs and drabs to investors, but eventually there won't be any more mugs and everyone has lost their money.

So don't be caught out. No person you have never heard of can offer you returns ten times the average rise in the stock market (think 10%).

Genuine investment programmes do not sell to people through high-pressure events. They sell through independent financial advisors, stockbrokers and banks. This is where you should be getting your investment advice.