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Financial adviser jailed for defrauding elderly client

Ponzi Scam Fraud Gavel Law 480

A financial adviser has been jailed for 14 months for defrauding a 93-year-old woman out of £58,000.

The Henley Standard reported last week that Sanjay Parmar of Lowfield Road in Reading admitted four counts of fraud by abuse of position at Guildford Crown Court.

A 93-year-old client wrote four cheques totalling £58,000 between April and July 2010, after Parmar told her the money would be paid into her savings account.

A relative based in Guildford sought legal advice after realising the money had not been paid into the account.

DC Andrew Skoglund, who investigated the case, says: “This man was in a position of trust and used this to take advantage of a vulnerable, elderly victim who believed she was handing over money in good faith to invest in her savings.”

Master Adviser senior partner Roy McLoughlin says: “Hopefully the increased professionalism and associated rise in standards due to the RDR will mean we hear less of these types of stories. It will be harder for rogue advisers to operate in future because of the focus on increased adviser transparency.”

But Financial Escape director Phil Castle does not agree. He says: “I am not sure the introduction of the RDR will make any difference. If someone wants to behave dishonestly, as this guy did, then they will do so regardless of the rules in place. It is almost frightening how trusting clients can be sometimes, and it is frightening how that trust can be abused.”

The case comes after the FSA banned Derbyshire-based IFA Malcolm Green earlier this month for stealing more than £1m from his clients. Green was jailed in February after admitting 42 counts of fraud.

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