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A man living on benefits in a rented house near Pontypridd managed to con a multi-millionaire American investor out of nearly a million pounds before splashing it on cars and motorbikes.

Keith Morgan was a disqualified company director but posed as a rich and successful businessman able to gain people hundreds of millions of pounds in credit.

Despite living in a semi-detached house on an estate in Church Village, he pretended to own property in Hollywood and have connections to the global banking elite and humanitarian projects worldwide.

After his fraud was exposed, he sparked a major armed police incident by threatening to harm himself with a large hunting knife in the foyer of a prominent building in Cardiff Bay.

Opening the case at Cardiff Crown Court, prosecutor Timothy Evans said: "The defendant is a confident and brash, at times convincing, conman."

The court heard that Morgan's fraud unravelled after South Wales Police were notified by Lloyds Bank that a payment of £998,911 had gone into Morgan's personal bank account on December 8, 2014.

Mr Evans said: "It must have been as if all his Christmases had come at once and he set out to spend it. Within a short time, that money started to flood out."

Morgan spent £68,349 on a luxury Jaguar sports car and £41,555 on a Ford Kuga. He also splashed £9,584 on a motorbike and £7,595 on another motorbike.

(Image: Crown Prosecution Service)

Prosecutors said £10,000 went into his wife Lorraine Morgan's personal account and about £12,000 went in restaurants and on other purchases.

The court heard he spent nearly a quarter of a million pounds, then made cash offers on two properties - one for £345,000, and the other for £150,000.

Mr Evans said the bank got the police involved, the court froze the rest of the money and investigators started to unravel what had happened.

The court heard the money came from Wa’el Chehab, an investment manager based in New York, running a business called Cedar Capital Management.

Prosecutors said he was previously vice president of Citibank in New York, but set up an investment fund intending to trade global commodities, such as oil and currencies.

Mr Evans said he deals in large amounts, with the minimum he generally accepts from his investors being half a million dollars.

The court heard Morgan gave a "persuasive pitch" and Mr Chehab ended up giving him a short-term loan of nearly a million pounds.

Morgan had pretended that the money was needed for buying field hospitals from Turkey for humanitarian aid work.

Prosecutors said the defendant stated he was the owner of the best piece of land in Hollywood and was going to build and sell $50million homes.

Morgan said he was in direct discussion with Tom Cruise about a house purchase, but said he would probably turn the actor down as he wanted “higher end people”.

Mr Evans said his conduct was "wholly dishonest".

The court heard it was just before Christmas 2014 that Warren Deans, an independent consultant, discovered Morgan lived in south Wales, not New York or Hollywood.

The court heard he was disqualified in June 2010 for 13 years from being a company director.

Mr Evans said: "It was all a scam. He is, the prosecution suggest, a dishonest conman."

Morgan was interviewed by the police on February 27, 2015 and told officers he was involved in humanitarian aid work, providing financing for various projects.

Asked where the million pounds had come from, he replied it was a loan to kick-start a mobile field hospital agreement he was in the middle of negotiating.

The defendant told officers he was well-connected with "top government officials" in various countries, stressing he knew the top compliance officer of "the feds" in the USA. He would not provide any further details.

Morgan, 61, from Cwrt Yr Efail in Church Village, Pontypridd, denied fraud and money laundering, but was found guilty by a jury following a trial in August. He was convicted in his absence after failing to attend court after the jury retired.

His case was listed for sentence on Friday, September 21, but he did not attend that hearing either after telling his barrister he was on his way to hospital.

Lawrence Henderson, defending, said: “It seems the defendant was struggling to come to terms with what the jury’s verdict means for him.”

The court heard Morgan stated he had suffered a "further attack", but did not give any more details.

Mr Henderson noted the judge may regard the matter with “a degree of scepticism” given the circumstances of the case.

Judge Tracey Lloyd-Clarke noted there had been problems in obtaining medical reports and did not sentence him in his absence, but issued a warrant for arrest without bail.

She observed he had been well enough to attend the trial, give evidence and attend a meeting with a probation officer, adding his doctor's note was "not satisfactory".

Morgan was arrested with a hunting knife near the Senedd in Cardiff Bay the next day.

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As the prosecutor outlined the facts, the defendant called out: “I was no danger to anyone.”

The judge told him to he would be sent down to cells if he interrupted again.

Prosecutors said police were called to ITV studios in Bute Place, Assembly Square, at around 8am after the defendant’s wife raised concerns about his behaviour.

Mr Evans said: “[The officer] could see he had a large hunting-style knife.”

The court heard he pressed the 4in blade to his neck and threatened to harm himself.

Prosecutors said the area was cordoned off as firearms officers and negotiators were called to the scene.

After two-and-a-half hours, Morgan slid the knife across the floor towards officers as he was asked and he was taken away in an ambulance for medical assessment.

He was judged to be fit for detention and remanded in custody.

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His case was listed before Judge Neil Bidder QC on September 24. The defendant was charged with failing to surrender to bail.

When the clerk put the charge to him, he said: "I do not agree at all."

Morgan told the judge he wished to address him on “human rights clauses”, but Judge Bidder said his conviction stood and he would need take his case to the Court of Appeal.

The defendant added: "My health is at dire risk. I am in a situation where I could possibly die today or tomorrow."

Morgan said he believed he had suffered a stroke or a mini-stroke, but the judge noted the medical reports did not make any mention of such a diagnosis.

He warned the defendant he could be perverting the course of justice if he lied about his health.

Judge Bidder remanded him in custody and reiterated the need for medical reports before his sentencing hearing.

He asked the prison officer to make sure the defendant was sent straight for a medical check-up in prison.

Morgan’s case was listed for sentence on Monday, October 15. He admitted possessing a hunting knife in a public place, but said: “There is a good reason.”

Mr Henderson stressed his client had no previous convictions, although the court heard he was previously disqualified as a company director.

He suggested the circumstances were “almost inconceivable”, adding: “ It beggars belief as to how Mr Chehab advanced this money.”

The defence barrister said the complainant would never have given the loan if he had realised Morgan lived in a rented semi-detached house in south Wales.

The court heard Morgan has indicated he has “ large amounts of money abroad” and will pay back the £1m.

Mr Henderson said his client wished to stress there was no risk to the public when he took the knife to Assembly Square, the danger was “ entirely to himself”.

He said Morgan maintains his innocence and believes the jury “got the wrong end of the stick”.

Mr Henderson said the defendant went to the area because he wanted to speak to a journalist and then intended to kill himself.

The court heard Morgan has a number of health problems and a history of post-traumatic stress disorder.

A psychiatric report was previously ordered, but has not yet been produced.

The defence barrister described Morgan, who lives with his wife and cares for his father, as “ well-mannered, respectful and diligent”.

Judge Lloyd-Clarke noted there was a “long and detailed” police investigation.

She found the offending was sophisticated with significant planning and involved the defendant telling “enormous lies”.

In her sentencing remarks, the judge said: “It is clear to me that you are a complete fantasist.”

Morgan was jailed for eight years and eight months and an order was made for the hunting knife to be destroyed.

The case will be listed for mention under the Proceeds of Crime Act on February 2.

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Detective Constable Neil Richards, who led the investigation, said: "This was a long and complex case but which had at its core a relatively simple concept – a persuasive conman who managed to obtain, fraudulently, a huge sum of money which he then attempted to spend.

"We are pleased that the majority of the money has been recovered, although work will continue to attempt to get the remainder back as well.

"I want to pay tribute to colleagues in South Wales Police as well as the banks involved, and partners across the world, who have helped us pursue this investigation."