Notorious former adviser Freddy David admitted obtaining money by deception from his victims – many of whom are elderly and unable to recover the money.
The 49-year-old of Elstree, Borehamwood, north of London, told his 55 clients their funds were being held in a high interest bank account in his company HBFS Financial Services.
However, instead of investing the money, David used the cash to fund his online gambling habit – wagering £15.6m ($20.5m, €17.5m), including £240,000 in one day.
Investments per person varied from £20,000 to £750,000.
The scheme was unpicked when the regulator became suspicious and began collaborating with experts in the City of London Police.
Appalling abuse of trust
Mark Steward, executive director of Enforcement and Market Oversight at the Financial Conduct Authority, said: “Freddy David abused the position of trust he had as managing director at a regulated firm to run this appalling fraud.
“The FCA have been working closely with the City of London Police throughout and will now be carrying out its own enforcement action against David on the back of the criminal conviction to prevent him working in financial services again.”
Police staff investigator Katie Watkins said: “David was a well-respected member of his community who exploited this in his position as a managing director of a recommended financial advisory firm to gain trust from unsuspecting investors.
“This fraud has caused significant emotional distress and financial harm to the victims involved, many of whom invested their life savings in HBFS. Some victims are retired and are not in a position to recover the money lost.”
David was also barred from holding a directorship for 10 years.
