An IFA who used more than £90,000 of clients’ investments to pay off his own debts has been jailed for 21 months and banned from being a company director for five years.
Andrew Payne, an IFA living in Whissendine in Rutland, used money invested with him by clients to pay off personal and company debts, according to the Teeside Evening Gazette.
Payne pleaded guilty to two counts of fraud dating back to 2008. Defence barrister Jeremy Barnett said Payne was financially ruined and would not be able to find work.
He said: “He is bitterly sorry for the effects of his failure.”
Josef Thompson from Saltburn lost £87,187 of the £90,000 invested with Payne.
Prosecutor Richard Bennett said: “When the cheque was handed over Mr Thompson believed the money would be invested on his behalf in good faith. He expected to receive a series of payments on a monthly basis. In fact the £90,000 was not invested at all.”
Payne paid £12,500 into overdrafts of his two failing companies, £5000 into credit card debt and large amounts was put into his personal bank accounts and paid just £2,812 to Mr Thompson over five monthly payments.
Payne defrauded a second client by using a £5,000 investment for his own means. This client received £15,600 back from a total £55,000.