The Financial Conduct Authority has banned a jailed wealth manager from any regulated activity for life.
In July 2018, Freddy David pleaded guilty to obtaining a money transfer by deception and fraud by abuse of position.
Between 2005 and 2017, David ran a Ponzi scheme through wealth management company HBFS Financial Services (HBFS), where he was a managing director, which saw 55 victims defrauded out of more than £14.5m ($18.5m, €16.6m).
The UK watchdog said it is “prohibiting Mr David from performing any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional firm. This order takes effect from 15 May 2019”.
It added: “David is not a fit and proper person to perform any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional firm.
“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.
“In reaching this conclusion, the authority has had regard to all relevant circumstances, including the relevance and materiality of the offences and the too severity of the risk posed by Mr David to consumers and financial institutions and to confidence in the market generally.”
Defrauded clients
David 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, including £240,000 in one day.
Investments per person varied from £20,000 to £750,000.
David was also disqualified from being a director of a company for 10 years.
