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Former AIT directors ordered to compensate investors

The former chairman and chief executive, and former financial director of software firm AIT were ordered to pay compensation to investors at Southwark Crown Court on Friday.

Former chairman and CEO Carl Rigby was ordered to pay 208,796 in compensation to investors, 381,273 by way of compensation of assets and 250,000 towards litigation costs incurred by the FSA. Former financial director Gareth Bailey was ordered to pay 141,686 in compensation.

Rigby was sentenced to three years in prison and disqualified from being a company director for six years after being convicted of recklessly making a statement, promise or forecast that was misleading, false or deceptive. Bailey was convicted on the same count and imprisoned for two years, and disqualified from being a company director for four years.

Following the convictions, private and institutional investors who lost money after purchasing AIT shares on the basis of misleading information were invited by the FSA to apply to the Court for compensation. Private investors applied for compensation of 18,716 and institutional investors applied for 1,262,736.

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