Financial advisor jailed for spending £14 million of client money on gambling habit
A financial advisor who spent more than £14 million of his client’s money over 14 years to fund his lifestyle and gambling habit has been jailed today (30 July).
Freddy David, 49, was Managing Director at HBFS Ltd, a wealth management company which provided investment advice to clients.
He abused his position to sell investment products that simply did not exist, primarily an imaginary Bank of Scotland account that offered a high interest rate.
The defendant did not invest the money at all, instead transferring it to his own account where he spent it on gambling websites, school fees for his children, his own personal investments and other personal spending.
The victims were provided with forged documents from the Bank of Scotland, purportedly confirming that the investments had been made, Southwark Crown Court heard.
Today, David was jailed for six years and disqualified from being a company director for 10 years. He will now be subject to confiscation proceedings to pay back the money stolen.
Anton Allera, of the CPS, said: “Freddy David was trusted by his victims who invested their life savings with him. They trusted him as their financial advisor but many also considered him a friend or acquaintance through the Jewish community.
“The impact on some victims has been devastating, leaving them in long term financial distress.
“The CPS worked closely with the City of London Police and presented a very strong case. The evidence showed the investments of each victim and where David had deposited their money, leading him to plead guilty.”
Notes to editors
- Anton Allera is a Specialist Prosecutor in the CPS Specialist Fraud Division.
- Freddy David (21/11/1968) pleaded guilty to one count of fraud and one count of obtaining a money transfer by deception.