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.

Charm: Talke Stauss, left, said she was duped by  security guard Rizwan Butt, right, into paying a $1m deposit for a bogus  investment. The court heard the bachelor, 45, rented a Bentley and actually  lived with his mother

Modest: The home in Longsight, Manchester, where Rizwan  Butt lived with his mother while allegedly posing as a billion-dollar investment  adviser and renting a Bentley to visit top London hotels like the Ritz

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.

Trial: Mr and Mrs Stauss, who say they were conned out  of £625,000, hid their faces as they left court

‘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.

Roman Stauss, 44, said he knew paying a cash deposit was  unusual but he agreed because Butt was from the Middle East

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.’

Rizwan Butt, left, said he had not conned Talke Stauss,  right, and the deal fell through because her investment firm did not have a  relevant trading licence. Prosecutors say he committed fraud through a ‘charm  offensive’

Fraud claims: The black Mercedes in which Rizwan Butt,  45, arrived at Manchester Crown Court

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.’

Wealth: Three of the meetings were at London’s  prestigious Dorchester Hotel, pictured, the court heard

The home in Denton, Greater Manchester, where Butt was  living when apprehended by police

 

 

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.

Rizwan Butt, pictured outside Manchester Crown Court,  denies fraud, false representation, transferring criminal property and money  laundering. A jury heard he claimed to know investors in Abu Dhabi

‘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.

Read more: DailyMail