Alexander Milne, 55, who ran Norland Financial in Banff, had admitted embezzlement charges when he appeared before Peterhead Sheriff Court in July.
At a sentencing hearing before the same court in December, more detail was given as to how he defrauded 21 clients, including friends and relatives of Milne. Passing sentence Sheriff James Hendry said: “What concerns me is that this embezzlement took place over almost four years. It is now clear to me that, during this period, you took sums of money knowing that your business had failed. You robbed Peter to pay Paul.
“This matter is a tragedy both for you and your family but more so for the many investors, friends and relatives that invested in your scheme.”
Prosecutor Anne Macdonald told the court that a number of those defrauded would not be eligible for compensation from the Financial Services Compensation Scheme.
She said compensation would only go to those who had inv- ested in Norland Financial Ser- vices and not those who had invested through Milne as a sole trader.
Another mortgage broker named Alex J Milne from Inverurie also in North-east Scotland, has contacted media to ask them to make it clear that it is not him that has been jailed.