Alex Hope was originally sentenced in January 2015 to seven years in prison after defrauding investors out of £5.5m ($8m, €7.1m) in an unauthorised collective investment scheme.
His co-defendant, Raj Von Badlo, was sentenced to two years.
Lavish lifestyle
At the time of sentencing, Judge Taylor said Hope had forged fake documents and created a false persona, setting up a sophisticated scheme which enticed dozens to invest their money. He then used new clients’ money to pay those who wanted to withdraw their funds.
Hope only traded 12% of the total money and lost almost all of it. He used some of the money to fund his lavish lifestyle; including spending £1m in a casino, over £200,000 on designer watches and shoes, £60,000 on travel, and over £600,000 in bars and nightclubs in London, Miami, and New York.
The scheme was shut down by the Financial Services Authority in April 2012, and half of the amount taken from investors was frozen.
POCA prosecution
Southwark Crown Court on Friday ordered that almost £2.65 million was to be returned to investors.
In addition, Hope was subject to a POCA confiscation order of £166,696, which he must pay in full within three months or face a further sentence of 20 months imprisonment.
Von Badlo was ordered to pay £99,819 at an earlier hearing in December 2015. The sum, which represents his benefit from his involvement with the scheme, must be paid in full within three months or he will face a further 15 months imprisonment.
Victim compensation
Judge Taylor directed that all sums confiscated from Hope and Von Badlo were to be paid by way of compensation to the investors who were victims of their crimes.
In total, investors should expect to receive in excess of £2.9m, which equates to approximately 55% of the capital sums that are owed to them.
Largest ever
Mark Steward, the FCA’s director of enforcement and market oversight said: “This is the largest sum returned to victims of crime following an FSA/FCA prosecution and is the result of quick action in the first instance to restrain the proceeds of Mr Hope’s offending.”
