Alok Dhanda reportedly told clients he was using the cash to invest in property in India when he was actually using the money to pay off his gambling debts, which were said to amount to more than £1m.
Between 2007 and 2013 he coordinated a ‘Ponzi scheme’ where returns are generated for clients by using the money acquired from new investors.
During this time he ran an independent financial advisory firm called Dhanda Financial in Newcastle before working on a self-employed basis with Truly Independent.
In an interview with a media outlet in October last year Dhanda said working under the Truly Independent brand would remove the “hassle and stress” of managing his own business. He also said it was “quite tough” running a small one-man IFA “because of the way costs and regulation are going”.
According to media reports published today, Dhanda pleaded guilty to 37 counts of fraud at Newcastle-upon-Tyne Crown Court on Friday. He initially pleaded not guilty in a trial in April at North Tyneside Magistrates’ Court.
Reports also indicate that sentencing has been adjourned until 19 December while the police finish collecting victim statements, but that Dhanda – who has been remanded in custody – will face several years in prison.
