'Fantasist', 61, who pretended to be one of the world's richest men and claimed he was about to sell a £50m mansion to Tom Cruise while actually living on benefits is jailed for eight years

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Keith Morgan, 61 (pictured) pretended to be one of the world's richest men with connections to Downing Street, the US Government and the Saudi Royal Family

A 'fantasist' who convinced top investors Tom Cruise wanted to buy a £50million mansion from him despite living off benefits has been jailed for fraud.   

Keith Morgan, 61, pretended to be one of the world's richest men with connections to Downing Street, the US Government and the Saudi Royal Family.

But the father-of-two was actually bankrupt and living off state handouts in a rented three-bedroom house in the Welsh valleys.

A court heard he had 'just enough financial knowledge' to convince international financiers that he was the genuine article.

His bizarre claims included having a 20 per cent stake in one of the most expensive real estates in Hollywood, having a team of ex-SAS bodyguards for round the clock protection and building a haven for Syrian refugees.

Morgan of Pontypridd, Wales, was jailed for eight years after being convicted of fraud and two charges of money laundering.

After his bank tipped off police that £1million had mysteriously landed in his account a warrant was issued for his arrest.

The day after he failed to turn up in court he triggered an armed siege at the Welsh Parliament in Cardiff Bay.

But father-of-two Mr Morgan (pictured arriving at court for sentencing in handcuffs) was actually bankrupt and living off state handouts in a rented three-bedroom house in the Welsh valleys

He went there with a 12-inch hunting knife, which he was eventually convinced to put down after two and a half hours of threatening to slit his own throat. 

Morgan told investors he had a 20 per cent stake in one of the most expensive pieces of real estate in Hollywood called The Vineyard, his trial heard. 

He said Top Gun star Cruise, 56, wanted to buy a property on the land but he turned him down because his profile wasn't high enough. 

Cardiff Crown Court heard he met with Lex Grensill, an economic advisor to former Prime Minister David Cameron, at London's Royal Horseguard's Hotel.

He referred to him as 'his man in Downing Street' and only referred to him by the letter 'L'.   

He also posed as a humanitarian benefactor boasting he had his own' foundation', donating vast amounts of money to international causes.

This is the house Keith Morgan was living in in Pontypridd, Wales, while claiming he was a millionaire businessman 

Whitehall Court, which houses the Royal Horseguards Hotel as well as the National Liberal Club 

Morgan set up a £200million deal with New York fund manager Wa'el Chehab claiming he had access to the money through a guaranteed loan from the HSBC bank, the jury was told. 

The court heard he persuaded Mr Chehab to advance him £1million to help set up three field hospitals for Syrian refugees.

Prosecutor Tim Evans said: 'Mr Morgan is a confident, brash, and at times convincing, con man.

A team of ex-SAS bodyguards and plans to start a mobile field hospital: Morgan’s wild claims 

Pictured: Keith Morgan, 61, of Wales

Keith Morgan, 61, of Pontypridd, Wales, made a series of elaborate false claims about his wealth and connections to fraud people out of over £1million.

His bizarre stories included: 

 - Having a 20 per cent stake in The Vineyard, one of the world's most expensive real estates in Hollywood

- Tom Cruise wanted to buy a £50million property on the land but he planned to turn him down for not being 'high profile enough

- Needing £20million to set up three field hospitals for Syrian refugees

- Knowing Lex Greensill, former economic advisor to David Cameron, who acted as Morgan's 'man in Downing Street'

- Being a secret agent for the US Treasury Department

- Having 24-hour protection from a team of ex-SAS bodyguards

- Knowing members of the Saudi Royal family  

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'He set out to create an image of as one of the world's most successful investment specialists, bragging about dealing in billions of pounds and dollars across continents and about his personal wealth'

'In fact, he was living in a rented house on state benefits. Among other things, Mr Morgan said he was the owner of the best piece of land in Hollywood, where he was going to build and sell $50million homes.

'He said he was in direct discussion with Tom Cruise to buy a house, but that he would probably turn Mr Cruise down, as he wanted. What he described as 'higher end people'.

Mr Evans told how Morgan claimed to be involved in humanitarian aid work providing financing for various projects for people in war-torn parts of the world.

He said: 'He asked Mr Wa-el Chehab for a short-term loan pounds was a short-term loan to kick-start a mobile field hospital agreement he was in the middle of negotiating.

'That is a wonderful aim, to provide shelter and assistance for refugees in need although the money of course had gone into his own personal account.'

Morgan blew the money on a fleet of top-of-the-range Jaguar cars, two motorbikes and a £19,000 Ford Kuga car.

But his bank became suspicious that £1million had suddenly arrived in his account and tipped off police in case it was laundered money.

The court heard Morgan spent almost £250,000 in just a few weeks, putting some of it in an offshore bank account.

When he was arrested Morgan told police he could not answer some of their questions because he was a secret agent for the US Treasury Department. 

Judge Lloyd-Clarke told him: 'It is clear to me that you are a fantasist - you claimed to be one of the world's most wealthy men.

'You claimed to be someone sort of agent of the United States Treasury and that your were connected to someone in the Saudi Royal Family.

'In the fantasy world you created you told police you had a man in Downing Street.

'You have just enough knowledge of financial matters to be able to tell enormous lies.'

Keith Morgan claimed to have links to film star Tom Cruise (pictured left) and former Prime Minister David Cameron (right) 

South Wales Police have recovered one of the Jaguars and almost £750,000 from Morgan's bank accounts. A Proceeds of Crime Hearing will be held next year.

Police and lawyers in the case said Morgan's audacity was 'breathtaking'.

Detective Constable Neil Richards, who led the South Wales Police investigation, said after the case: 'This was a long and complex case but which had 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.'