Disgraced financial adviser faces a lifetime ban from financial services as he serves a six year jail sentence for the part he played in running a £14.5 million Ponzi scam.
Freddy David was imprisoned after admitting fraud and deception charges at Southwark Crown Court, London, in July 2018.
He was managing director of wealth manager HBFS Financial Services Ltd, which defrauded 55 victims.
David convinced his victims that he could earn them between 4% and 8% interest a year paid monthly if they tied their money to his firm for between three to five years.
Risk to investors
But much of the money went on David’s lavish lifestyle or was diverted a bogus interest payments for other investors.
City regulator the Financial Conduct Authority (FCA) has outlawed David from the industry by issuing a lifelong prohibition order.
“The authority considers that his convictions demonstrate a clear and serious lack of honesty and integrity such that he is not fit and proper to perform regulated activities,” said an FCA spokesman.
“In reaching this conclusion, the authority has had regard to all relevant circumstances, including the relevance and materiality of the offences and the severity of the risk posed by David to consumers and financial institutions and to confidence in the market generally.”
High Court orders director to repay £917,000
Meanwhile, the FCA has won an order from the High Court to recover £917,231 from Xcore Capital Ltd and director Jonathan Chitty for running an unauthorised investment scheme.
The firm collected money from investors, who were offered a 6% return, but most of the cash was spent on Chitty’s lavish lifestyle.
His personal spending included £102,000 on cryptocurrency, £58,000 on luxury goods, £24,000 on a Rolex watch and £20,000 on his wedding.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Prompt action by the FCA stopped this scheme in its tracks and prevented victims incurring much greater losses.
“Consumers should be especially wary when contacted out of the blue about an investment opportunity, and about financial services firms offering investment opportunities without FCA authorisation. If they’re not authorised, it’s probably a scam.”