Alan Joseph Richardson’s business MFC Finance Ltd in Wellingore, Lincolnshire was touted as a high-yielding investment vehicle but in fact diverted client funds as loans to businesses he owned.
MFC was managed and run by Mr Richardson from 1998 until its collapse in 2004 with it still owing over £1.2m to private investors.
The firm obtained capital from individual private investors who were promised rates of return of over 18 per cent interest and a safe return of capital.
MFC then sought to make a profit on the margin between the rate of interest paid by the firm to investors and the rate charged to borrowers.
The Serious Fraud office and Lincolnshire Police Economic Crime Unit commenced a joint investigation in March 2006 and Richardson was charged on May 6 2008 with various counts of fraud.
Richardson was sentenced today to a total of six years in prison after pleading guilty at a previous hearing on March 2 and was also disqualified from acting as a company director for ten years.
SFO director Richard Alderman says: “This is an impressive result obtained with the partnership of Lincolnshire Police, for the numerous elderly and vulnerable victims who lost their life savings as a result of Alan Richardson’s fraudulent activities. I am delighted we have been able to bring him to justice.”