The FCA has banned a former financial adviser after he was jailed for 18 months for defrauding clients out of £160,500 to fund a gambling habit and visits to female escorts.
Michael Bains, who most recently worked for Bright Future IFA according to the FCA register, was banned yesterday from performing any function in relation to any regulated activity.
In August 2013 Bains was sentenced to 18 months imprisonment after being convicted by York Crown Court of six counts of fraud. The offences were committed between April 2009 and March 2012.
The court heard Bains had run up substantial debts, including a £100,000 gambling debt.
Bains persuaded clients to invest in private deals for non-existent property development and investment schemes and used the money to fund repayments to other investors as well as his gambling habit and expenditure on female escorts he had met via internet sites.
He was found to have visited escorts on at least 49 occasions, spending around £150 on each visit.
Bains’ victims lost between £15,000 and £100,000, including a 58-year-old woman who lost her life savings of £100,000.
Detective Sergeant Edwards of the North Yorkshire Police’s Financial Investigation Unit said at the time of sentencing: “Bains has used his position to convince people who trusted him to invest their life savings wisely. He has cynically used their hard earned cash to indulge his obsession for gambling and escorts.
“There was no investment scheme – only other victims to repay. He has now declared himself bankrupt so there is little chance that the victims of the fraud will receive any compensation.”