A former accountant and an accomplice have been imprisoned after failing to pay their confiscation orders following a conviction for running a Ponzi scheme.
Ex-accountant Shinder Gangar and Alan White have been handed jail terms of six and three-and-a-half years respectively for not making the payments of £2.3m and £690,000.
They should have paid the orders by January 2012 but to date Gangar has paid just £68,000 and White £145,000.
The pair ran a Midlands-based scheme that falsely claimed Lord Andrew Lloyd-Webber and Sir David Frost as investors and managed to dupe victims in the UK and US out of around £140m.
Gangar and White were found guilty of a number of offences relating to the scam in February 2008 and sentenced in April of that year to seven years’ and six months’ imprisonment.
Both were partners in accountancy firm Dobb White and Co which marketed the investments.
However, there was no underlying trading and investors were paid out of new clients’ money. Victims’ money was used to provide unsecured loans to third parties and to buy property.
Serious Fraud Office crime division head of proceeds Mark Thompson says: “The criminals have had ample opportunity to pay the order and broke several promises they gave to the court. The activation of their default sentences should serve as a warning to others of the consequences of failing to comply with confiscation orders.”