Ian James Hudson, an unauthorised financial adviser, was this week found guilty of fraudulent trading by Judge Tomlinson at Southwark Crown Court. This verdict brought to a close charges laid by the FCA in May.
Mr Hudson was sentenced to 4 years’ imprisonment for one count of fraudulent trading, with two additional terms of 14 months, each reflecting a breach of s19 FMSA, to run concurrently.
For a period of 11 years, Mr Hudson advised on regulated financial products without being authorised. He further accepted deposits from these clients which he led clients to believe would be invested in financial vehicles. This money amounted to about £2m and was in fact used to repay existing clients, other individuals or to fund himself personally.
Mark Steward, the FCA executive director of enforcement and market oversight, said:
Mr Hudson’s defrauding was calculated and persistent over a number of years, preying on victims who believed he was a financial adviser and trusted friend when he was neither of these things.
The FCA stated any money recovered from Hudson will be used to compensate victims,.