Andrew Payne – an IFA from Whissendine in Rutland, used more than £90,000 in client money to pay-off his personal and company debts. Mr. Payne has been sentenced to 21 months jail-term and has been barred from being on the board of any company for five years, reported the Teeside Evening Gazette.
Defence Barrister said his client was financially ruined and would not be able to find a job. Payne pleaded guilty to two counts of fraud, committed in 2008.
“He is bitterly sorry for the effects of his failure”, said the defence Barrister.
Josef Thompson – a victim of Payne from Saltburn lost £87,187 of the £90,000 he paid to the IFA.
“When the cheque was handed over Mr. Thompson believed the money would be invested on his behalf in good faith. He expected to receive a series of payments on a monthly basis. In fact the £90,000 was not invested at all”, said Prosecutor Richard Bennett.
Mr. Thompson’s health deteriorated, he became overdrawn and lost his mobility since he was unable to afford car-repairs.
Payne advised Mr. Thompson to invest money in Bright Blu – an overseas property development company, but forgot to disclose that that he was also a director of the company. As the Greek property market crashed, Mr. Payne’s company also collapsed.
Payne later paid back £2,812 in five monthly installments to Mr. Thompson. He used £12,500 to pay-off overdrafts of two of his failing companies. A large chunk was deposited in his personal bank account while £5,000 was used to settle his credit card dues.
A second client from Leicester received only £15,600 out of the total £55,000 he invested with Payne. Payne had made a £5,000 investment in Bright Blu for his own benefit.